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 challenges in its nitrogen business and a volatile pricing environment.
Let’s have a quick look at the company’s second-quarter release.
Estimate Trend & Surprise History
Investors should note that the earnings estimate for Potash Corp. for the second quarter has remained static over the last week and the last month. The company has beaten the Zacks Consensus Estimate in 2 of the trailing 4 quarters with an average beat of around 3.07%.
Earnings
Potash Corp. delivered earnings of 50 cents per share. That missed the Zacks Consensus Estimate of 52 cents per share.
Revenues
Potash Corp. reported revenues of $1,731 million, down 8.5% year over year. But that beat the Zacks Consensus Estimate of $1,721 million.
Key Developments to Note
Potash Corp. retained its expectations of global potash demand and continues to see shipments of roughly 60 million tons for 2015. The company revised its 2015 earnings guidance to $1.75-$1.95 per share from $1.75-$2.05 per share expected earlier. For the third quarter, it expects earnings to be in the range of 35 cents to 45 cents per share.
Zacks Rank
Currently, Potash Corp. has a Zacks Rank #3 (Hold), 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
|