The 10-second takeaway
For the quarter ended June 30 (Q2), Agrium beat expectations on revenue and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share improved significantly.
Margins grew across the board.
Agrium logged revenue of $6.83 billion. The 16 analysts polled by S&P Capital IQ predicted sales of $6.62 billion on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $6.20 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 $5.43. The 16 earnings estimates compiled by S&P Capital IQ anticipated $5.34 per share. GAAP EPS of $5.44 for Q2 were 20% higher than the prior-year quarter's $4.54 per share. (The prior-year quarter included -$0.06 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 27.4%, 40 basis points better than the prior-year quarter. Operating margin was 17.9%, 170 basis points better than the prior-year quarter. Net margin was 12.6%, 100 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $3.16 billion. On the bottom line, the average EPS estimate is $1.83.
Next year's average estimate for revenue is $16.40 billion. The average EPS estimate is $10.16.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,739 members out of 1,781 rating the stock outperform, and 42 members rating it underperform. Among 325 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 315 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 $100.60.
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