Mosaic Triples its Profits: What’s wrong with that?

As the rescue plan drags on and on, the rest of the non-financial economy keeps going about its business as best it can with reduced credit and jittery customers.

Mosaic (MOS) one of the larger fertilizer companies, reported first quarter earnings today that were nearly triple the year ago quarter.

Yet the stock was crushed 17% in after hours trading.

Revenues beat analysts’ estimates as well. But investors appear spooked by the company’s decision to curtail phosphate production due to higher than normal inventory levels in the industry.

Potash, however, as I’ve talked about here before, continues to be in tight supply because of the current strike at Potash of Saskatchewan, which has shut down about 30% of that company’s production. From Reuters:

“We’re seeing in the industrial side of the potash business very strong demand … Not new demand, but demand from our competitors customers,” said Prokopanko.

Prices for Potash also continue to remain very, very high.

Take a look at these great numbers:

1. Profits rose to $1.18 billion from $305.5 billion in the first quarter of 2008

2. Revenue doubled to $4.32 billion

These are stunning numbers for any company year-over-year and especially during this challenging economic environment.

But they missed analysts’ estimates by at least 10 cents. Analysts had been even more bullish.

Said the company’s CEO:

“It (earnings) met our expectations, but some analysts had different calculations I suppose. We’re very pleased with the results that we posted,” said Jim Prokopanko, in an interview with Reuters.

The company also continues to see strong demand from farmers for fertilizers- so that part of “the story” hasn’t changed.

But once you “miss” on estimates, the party is over. The other fertilizer companies like Potash (POT) and CF Industries Holdings (CF) were also getting hit hard in the after hours trading.

Cool heads should prevail here. The fundamentals are in-tact and these companies are generating a lot of cash.

If you liked Mosaic at $100, what’s not to like at $55?

Stocks seem to be the only item that people don’t like to buy when they go on sale.

The other fertilizer companies don’t report for several weeks. They could get beaten up further here.

Look for bargains!