The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Agrium beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. Non-GAAP earnings per share shrank. GAAP earnings per share increased significantly.
Gross margins dropped, operating margins dropped, net margins expanded.
Agrium reported revenue of $3.26 billion. The 17 analysts polled by S&P Capital IQ foresaw revenue of $3.19 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $2.16. The 21 earnings estimates compiled by S&P Capital IQ anticipated $2.03 per share. Non-GAAP EPS of $2.16 for Q4 were 7.7% lower than the prior-year quarter's $2.34 per share. (The prior-year quarter included -$0.85 per share in earnings from discontinued operations.) GAAP EPS of $2.34 for Q4 were 97% higher than the prior-year quarter's $1.19 per share. (The prior-year quarter included -$0.85 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 31.5%, 140 basis points worse than the prior-year quarter. Operating margin was 16.3%, 70 basis points worse than the prior-year quarter. Net margin was 10.9%, 500 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $3.80 billion. On the bottom line, the average EPS estimate is $1.32.
Next year's average estimate for revenue is $17.55 billion. The average EPS estimate is $9.93.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,730 members out of 1,772 rating the stock outperform, and 42 members rating it underperform. Among 347 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 337 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 $109.74.
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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.