Potash Corp. of Saskatchewan
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Potash Corp. of Saskatchewan met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Potash Corp. of Saskatchewan reported revenue of $1.99 billion. The 15 analysts polled by S&P Capital IQ predicted a top line of $2.02 billion on the same basis. GAAP reported sales were 9.3% lower 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 came in at $0.74. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.72 per share. GAAP EPS of $0.74 for Q3 were 21% lower than the prior-year quarter's $0.94 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 46.6%, 500 basis points worse than the prior-year quarter. Operating margin was 40.3%, 790 basis points worse than the prior-year quarter. Net margin was 32.4%, 530 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.96 billion. On the bottom line, the average EPS estimate is $0.75.
Next year's average estimate for revenue is $7.98 billion. The average EPS estimate is $3.03.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 4,744 members out of 4,910 rating the stock outperform, and 166 members rating it underperform. Among 844 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 815 give Potash Corp. of Saskatchewan 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 Potash Corp. of Saskatchewan is outperform, with an average price target of $52.30.
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