The Gory Details on Intrepid Potash's Double Miss

Seth Jayson, The Motley Fool
Updated

Intrepid Potash (NYS: IPI) reported earnings on July 31. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended June 30 (Q2), Intrepid Potash missed estimates on revenues and missed estimates on earnings per share.

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


Margins shrank across the board.

Revenue details
 Intrepid Potash chalked up revenue of $92.7 million. The eight analysts polled by S&P Capital IQ predicted a top line of $101.9 million on the same basis. GAAP reported sales were 8.7% lower than the prior-year quarter's $91.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

EPS details
 EPS came in at $0.17. The 13 earnings estimates compiled by S&P Capital IQ averaged $0.21 per share. Non-GAAP EPS of $0.17 for Q2 were 32% lower than the prior-year quarter's $0.25 per share. GAAP EPS of $0.15 for Q2 were 40% lower than the prior-year quarter's $0.25 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

Margin details
 For the quarter, gross margin was 33.8%, much worse than the prior-year quarter. Operating margin was 24.5%, 950 basis points worse than the prior-year quarter. Net margin was 13.6%, 730 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $114.4 million. On the bottom line, the average EPS estimate is $0.21.

Next year's average estimate for revenue is $411.9 million. The average EPS estimate is $0.78.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Intrepid Potash is hold, with an average price target of $21.35.

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The article The Gory Details on Intrepid Potash's Double Miss originally appeared on Fool.com.

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. The Motley Fool has no position in any of the stocks mentioned. 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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