Agriculture company Mosaic (MOS) reported impressive third-quarter results. However, the company is expected to suffer from rising input costs. So, let’s evaluate if it is wise to buy the dip in its stock price now. Read on.The world’s leading producer and marketer of concentrated phosphate and potash crop nutrients, The Mosaic Company (NYSE:MOS), which is headquartered in Plymouth, Minn.,recently reported impressive third-quarter earnings results, with a 44% year-over-year increase in revenues to $3.42 billion. Also, the company raised its 2022 annual dividend target by 50% to $0.45 per share. And it strengthened its balance sheet by retiring $450 million of long-term debt in August.
However, the stock has lost 6.6% in price over the past month and is currently trading 12.8% below its 52-week high of $43.24, which it hit on October 20, 2021.
In the fourth quarter, its raw material costs per ton are expected to be $5 - $10 higher than in the third quarter. Furthermore, inflationary pressures on production costs and supply chain constraints make the company’s near-term outlook uncertain.