Potash Corp. of Saskatchewan Beats on Both Top and Bottom Lines

Just the facts, Fool.

Potash Corp. of Saskatchewan (NYSE: POT) reported earnings on April 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Potash Corp. of Saskatchewan beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly. GAAP earnings per share grew.

Gross margins expanded, operating margins increased, net margins dropped.

Revenue details
Potash Corp. of Saskatchewan notched revenue of $1.95 billion. The 14 analysts polled by S&P Capital IQ expected revenue of $1.80 billion on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $1.64 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.63. The 26 earnings estimates compiled by S&P Capital IQ forecast $0.60 per share. GAAP EPS of $0.63 for Q1 were 13% higher than the prior-year quarter's $0.56 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 44.4%, 190 basis points better than the prior-year quarter. Operating margin was 37.8%, 70 basis points better than the prior-year quarter. Net margin was 28.5%, 140 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $2.19 billion. On the bottom line, the average EPS estimate is $0.82.

Next year's average estimate for revenue is $8.18 billion. The average EPS estimate is $2.92.

Investor sentiment
The stock has a five-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 747 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 721 give Potash Corp. of Saskatchewan a green thumbs-up, and 26 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 $46.14.

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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

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