The 10-second takeaway
For the quarter ended June 30 (Q2), Intrepid Potash beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share shrank significantly.
Margins contracted across the board.
Intrepid Potash tallied revenue of $98.8 million. The four analysts polled by S&P Capital IQ anticipated revenue of $96.6 million on the same basis. GAAP reported sales were 16% lower than the prior-year quarter's $108.9 million.
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 $0.25. The nine earnings estimates compiled by S&P Capital IQ averaged $0.25 per share. GAAP EPS of $0.25 for Q2 were 39% lower than the prior-year quarter's $0.41 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 43.9%, 670 basis points worse than the prior-year quarter. Operating margin was 34.1%, 1,250 basis points worse than the prior-year quarter. Net margin was 20.9%, 730 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $130.2 million. On the bottom line, the average EPS estimate is $0.38.
Next year's average estimate for revenue is $463.5 million. The average EPS estimate is $1.29.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Intrepid Potash is hold, with an average price target of $25.00.
Over the decades, small-cap stocks, like Intrepid Potash have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Intrepid Potash to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
This Little-Known Potash Stock Soared 128.8% in 2017
Here's the real reason Intrepid Potash shares rallied last year.
Here's Why Intrepid Potash Rose 24.6% in December
Believe it or not, the fertilizer producer rode higher oil prices higher.
Top Potash Stocks to Consider Buying Now -- and 1 to Avoid
Potash is a key agricultural fertilizer nutrient, which is why stabilizing demand and prices is good news for some potash stocks.