PotashCorp
The 10-second takeaway
For the quarter ended June 30 (Q2), PotashCorp missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Revenue details
PotashCorp notched revenue of $2.27 billion. The 12 analysts polled by S&P Capital IQ wanted to see a top line of $2.32 billion on the same basis. GAAP reported sales were 3.6% higher than the prior-year quarter's $2.19 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 $0.99. The 26 earnings estimates compiled by S&P Capital IQ predicted $1.02 per share. GAAP EPS of $0.60 for Q2 were 38% lower than the prior-year quarter's $0.96 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 53.2%, 10 basis points worse than the prior-year quarter. Operating margin was 47.3%, 50 basis points worse than the prior-year quarter. Net margin was 23.0%, 1,530 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $2.24 billion. On the bottom line, the average EPS estimate is $0.85.
Next year's average estimate for revenue is $8.41 billion. The average EPS estimate is $3.39.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,725 members out of 4,895 rating the stock outperform, and 170 members rating it underperform. Among 855 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 822 give PotashCorp a green thumbs-up, and 33 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 $53.31.
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