Can Potash Corp. of Saskatchewan Beat These Numbers?

Checking expectations

Potash Corp. of Saskatchewan (NYSE: POT) is expected to report Q1 earnings on April 25. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Potash Corp. of Saskatchewan's revenues will increase 9.8% and EPS will increase 7.1%.

The average estimate for revenue is $1.80 billion. On the bottom line, the average EPS estimate is $0.60.

Revenue details
Last quarter, Potash Corp. of Saskatchewan reported revenue of $1.53 billion. 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 details
Last quarter, EPS came in at $0.48. 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.

Recent performance
For the preceding quarter, gross margin was 38.3%, much worse than the prior-year quarter. Operating margin was 31.9%, much worse than the prior-year quarter. Net margin was 27.5%, much worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $8.17 billion. The average EPS estimate is $3.02.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,770 members out of 4,938 rating the stock outperform, and 168 members rating it underperform. Among 729 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 702 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.

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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. 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.

Stocks Mentioned

Potash Corporation of Saskatchewan Inc.

POT

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.