PotashCorp
The 10-second takeaway
For the quarter ended March 31 (Q1), PotashCorp missed estimates on revenue and whiffed on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped significantly.
Margins contracted across the board.
Revenue details
PotashCorp logged revenue of $1.64 billion. The 15 analysts polled by S&P Capital IQ predicted a top line of $1.76 billion on the same basis. GAAP reported sales were 20% lower than the prior-year quarter's $2.06 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.56. The 27 earnings estimates compiled by S&P Capital IQ forecast $0.63 per share. GAAP EPS of $0.56 for Q1 were 33% lower than the prior-year quarter's $0.84 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 42.5%, 1,080 basis points worse than the prior-year quarter. Operating margin was 37.1%, 1,030 basis points worse than the prior-year quarter. Net margin was 29.9%, 570 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $2.37 billion. On the bottom line, the average EPS estimate is $1.03.
Next year's average estimate for revenue is $8.43 billion. The average EPS estimate is $3.50.
Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 4,747 members out of 4,919 rating the stock outperform, and 172 members rating it underperform. Among 862 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 833 give PotashCorp a green thumbs-up, and 29 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 $56.32.
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