Markets

Potash Corp. (POT) Q3 Earnings Miss Estimates, Sales Beat

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 company has a strong geographic diversification as most of the potash is sent offshore. Moreover, Potash Corp. continues to invest in expanding its operational capability in potash.

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 a volatile pricing environment.

Let's have a quick look at the company's third-quarter release.

Estimate Trend & Surprise History

Investors should note that the earnings estimate for Potash Corp. for the third quarter has decreased by 2 cents to 38 cents over the last month. The company has missed the Zacks Consensus Estimate in 3 of the trailing 4 quarters with an average negative surprise of 4.71%.

Earnings

Potash Corp. delivered earnings of 34 cents per share. That missed the Zacks Consensus Estimate of 38 cents per share.

Revenues

Potash Corp. reported revenues of $1,529 million, down 6.8% year over year. But that beat the Zacks Consensus Estimate of $1,488 million.

Key Developments to Note

Potash Corp revised its full-year 2015 earnings guidance to $1.55-$1.65 per share.

In order to match supply to demand, the company is accelerating the permanent closure date of its Penobsquis mine in New Brunswick to the end of Nov 2015. The move is expected to improve the company's cost profile and help manage inventories.

Zacks Rank

Potash Corp. currently has a Zacks Rank #5 (Strong Sell), 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!

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.