The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Agrium missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Agrium notched revenue of $2.96 billion. The 16 analysts polled by S&P Capital IQ foresaw sales of $3.07 billion on the same basis. GAAP reported sales were 5.7% lower than the prior-year quarter's $3.14 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.34. The 22 earnings estimates compiled by S&P Capital IQ predicted $1.82 per share. GAAP EPS of $0.80 for Q3 were 57% lower than the prior-year quarter's $1.85 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 26.9%, 140 basis points worse than the prior-year quarter. Operating margin was 7.4%, 580 basis points worse than the prior-year quarter. Net margin was 4.3%, 500 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.11 billion. On the bottom line, the average EPS estimate is $2.07.
Next year's average estimate for revenue is $16.68 billion. The average EPS estimate is $10.43.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,743 members out of 1,788 rating the stock outperform, and 45 members rating it underperform. Among 353 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 343 give Agrium a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Agrium is outperform, with an average price target of $111.76.
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