Potash Corp. of Saskatchewan, Inc. (POT) is a fertilizer company producing three primary plant nutrients – potash, phosphate and nitrogen. Potash Corp. has a competitive advantage stemming from its mining rights to the world's largest potash reserve. The strain on the world's food supply is driving demand for all three nutrients of the company, especially potash. The company is expected to gain from healthy demand for potash across major markets this year. It continues to invest in expanding capacity in its potash business. However, Potash Corp. faces earnings headwinds associated with amendments to potash taxation in conjunction with the government of Saskatchewan's 2015-16 provincial budget. It is also exposed to headwinds associated with weakening growth in markets outside of the U.S. and a potentially weaker nitrogen pricing environment. Let’s have a quick look at the company’s first-quarter release. Estimate Trend & Surprise History Investors should note that the earnings estimate for Potash Corp. for first quarter has remained the same at 50 cents per share over the last week and the last month. The company has beaten the Zacks Consensus Estimate in 3 of the trailing 4 quarters with an average beat of around 8.21%. Earnings Potash Corp. delivered earnings of 44 cents per share. Earnings missed the Zacks Consensus Estimate of 50 cents per share. Revenues Potash Corp. reported revenues of $1,665 million, down 0.9% year over year. This also missed the Zacks Consensus Estimate of $1,705 million. Key Developments to Note Potash Corp. stated that it remains encouraged by the strength in global potash demand and sees momentum accelerating through the second quarter, especially in offshore markets. The company adjusted its full-year 2015 guidance based mainly on higher Saskatchewan potash taxes and first-quarter performance that trailed its initial expectations. The company trimmed its 2015 earnings guidance to $1.75-$2.05 per share. For the second quarter, it expects earnings to be in the range of 45 cents to 55 cents per share. Zacks Rank Currently, Potash Corp. has a Zacks Rank #4 (Sell), but that could change following its earnings report which was just released. Market Reaction Potash Corp’s shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today. Check back later for our full write up on Potash Corp’s earnings report! Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report POTASH SASK (POT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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