How The Wheels Came Off PotashCorp's Bus
PotashCorp (NYS: POT) reported earnings on May 2. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), PotashCorp missed estimates on revenue and whiffed on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped significantly.
Margins contracted across the board.
PotashCorp logged revenue of $1.64 billion. The 15 analysts polled by S&P Capital IQ predicted a top line of $1.76 billion on the same basis. GAAP reported sales were 20% lower than the prior-year quarter's $2.06 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.56. The 27 earnings estimates compiled by S&P Capital IQ forecast $0.63 per share. GAAP EPS of $0.56 for Q1 were 33% lower than the prior-year quarter's $0.84 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 42.5%, 1,080 basis points worse than the prior-year quarter. Operating margin was 37.1%, 1,030 basis points worse than the prior-year quarter. Net margin was 29.9%, 570 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.37 billion. On the bottom line, the average EPS estimate is $1.03.
Next year's average estimate for revenue is $8.43 billion. The average EPS estimate is $3.50.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 4,747 members out of 4,919 rating the stock outperform, and 172 members rating it underperform. Among 862 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 833 give PotashCorp a green thumbs-up, and 29 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 $56.32.
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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. Motley Fool newsletter services have recommended buying shares of PotashCorp. 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.