PotashCorp Whiffs on Revenues
PotashCorp (NYS: POT) reported earnings on Jan. 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), PotashCorp whiffed on revenue and whiffed on earnings per share.
Compared to the prior-year quarter, revenue improved, and earnings per share increased significantly.
Margins expanded across the board.
PotashCorp notched revenue of $1.78 billion. The 13 analysts polled by S&P Capital IQ anticipated a top line of $2.08 billion. Sales were 9.8% higher than the prior-year quarter's $1.70 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.78. The 25 earnings estimates compiled by S&P Capital IQ forecast $0.88 per share. GAAP EPS of $0.78 for Q4 were 46% higher than the prior-year quarter's $0.53 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 47.7%, 280 basis points better than the prior-year quarter. Operating margin was 45.4%, 510 basis points better than the prior-year quarter. Net margin was 36.6%, 820 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.07 billion. On the bottom line, the average EPS estimate is $0.83.
Next year's average estimate for revenue is $8.98 billion. The average EPS estimate is $3.90.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,672 members out of 4,842 rating the stock outperform, and 170 members rating it underperform. Among 1,028 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,001 give PotashCorp a green thumbs-up, and 27 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PotashCorp is outperform, with an average price target of $59.35.
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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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