Please ensure Javascript is enabled for purposes of website accessibility

PotashCorp Earnings: 3 Things You Need to Watch Closely

By Neha Chamaria - Apr 26, 2016 at 2:30PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Will PotashCorp lower its 2016 guidance?

Is PotashCorp's fortunes turning around? Image source: PotashCorp.

The past quarter was a welcome break for Potash Corporation of Saskatchewan (POT) investors, as the stock surged nearly 13% after a dismal start to the year. However, PotashCorp continues to underperform rival Mosaic Company (MOS -5.26%), thanks largely to its greater exposure to the struggling potash markets. Mosaic is concentrated on phosphates, prices of which haven't suffered as much.

Could PotashCorp's upcoming first-quarter earnings report on April 28, then, pull the brakes on its rally, given the massive headwinds facing the company? Expectations are muted, with the company itself projecting  its Q1 earnings to be between $0.10 and $0.20 per share. That translates into a massive 55% year-over-year drop even at the higher end of the range. If that sounds awful, PotashCorp may have to lower its guidance for 2016 if things in three key areas don't improve soon. Click through the following slideshow to know what they are.

 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Nutrien Stock Quote
Nutrien
POT
The Mosaic Company Stock Quote
The Mosaic Company
MOS
$57.95 (-5.26%) $-3.22

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

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
331%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/21/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.