The 10-second takeaway
For the quarter ended Dec. 31 (Q4), PotashCorp whiffed on revenue and whiffed on earnings per share.
Compared to the prior-year quarter, revenue improved, and earnings per share increased significantly.
Margins expanded across the board.
PotashCorp notched revenue of $1.78 billion. The 13 analysts polled by S&P Capital IQ anticipated a top line of $2.08 billion. Sales were 9.8% higher than the prior-year quarter's $1.70 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.78. The 25 earnings estimates compiled by S&P Capital IQ forecast $0.88 per share. GAAP EPS of $0.78 for Q4 were 46% higher than the prior-year quarter's $0.53 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 47.7%, 280 basis points better than the prior-year quarter. Operating margin was 45.4%, 510 basis points better than the prior-year quarter. Net margin was 36.6%, 820 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.07 billion. On the bottom line, the average EPS estimate is $0.83.
Next year's average estimate for revenue is $8.98 billion. The average EPS estimate is $3.90.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,672 members out of 4,842 rating the stock outperform, and 170 members rating it underperform. Among 1,028 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,001 give PotashCorp a green thumbs-up, and 27 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PotashCorp is outperform, with an average price target of $59.35.
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