Potash Corp. of Saskatchewan
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Potash Corp. of Saskatchewan whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Potash Corp. of Saskatchewan booked revenue of $1.53 billion. The 11 analysts polled by S&P Capital IQ anticipated a top line of $1.73 billion on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $1.78 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 $0.48. The 27 earnings estimates compiled by S&P Capital IQ predicted $0.58 per share. GAAP EPS of $0.48 for Q4 were 38% lower than the prior-year quarter's $0.78 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 38.3%, 1,170 basis points worse than the prior-year quarter. Operating margin was 30.3%, 1,540 basis points worse than the prior-year quarter. Net margin was 27.5%, 1,090 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.87 billion. On the bottom line, the average EPS estimate is $0.67.
Next year's average estimate for revenue is $8.28 billion. The average EPS estimate is $3.20.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 4,791 members out of 4,955 rating the stock outperform, and 164 members rating it underperform. Among 903 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 876 give Potash Corp. of Saskatchewan a green thumbs-up, and 27 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 $47.28.
The rich are different than you and me: They might not notice the moneymaking stories right under our noses. In our new report, "Middle-Class Millionaire-Makers: 3 Stocks Wall Street's Too Rich to Notice," we give you three Peter Lynch-inspired buy-what-you-know stocks for the 99%. Click here for instant access to this free report.
- Add Potash Corp. of Saskatchewan 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 position in any of the stocks mentioned. 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.