Agrium Beats on the Top Line

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Agrium (NYS: AGU) reported earnings yesterday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Agrium crushed expectations on revenues and beat slightly on earnings per share.

Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share dropped.


Margins dropped across the board.

Revenue details
Agrium tallied revenue of $3.63 billion. The 14 analysts polled by S&P Capital IQ looked for sales of $2.96 billion on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $2.95 billion.

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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 $1.03. The 18 earnings estimates compiled by S&P Capital IQ anticipated $1.01 per share. GAAP EPS of $0.97 for Q1 were 11% lower than the prior-year quarter's $1.09 per share. (The prior-year quarter included $0.07 per share in earnings from discontinued operations.)

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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 22.0%, 250 basis points worse than the prior-year quarter. Operating margin was 6.6%, 90 basis points worse than the prior-year quarter. Net margin was 4.2%, 160 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $6.29 billion. On the bottom line, the average EPS estimate is $4.68.

Next year's average estimate for revenue is $15.74 billion. The average EPS estimate is $9.36.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,739 members rating the stock outperform and 43 members rating it underperform. Among 351 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 341 give Agrium a green thumbs-up, and 10 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Agrium is outperform, with an average price target of $99.24.

At the time this article was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. 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.

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