Markets

Potash Corp. (POT) Q4 Earnings & Sales Miss Estimates

Potash Corp. of Saskatchewan, Inc.POT is a fertilizer company producing three primary plant nutrients - potash, phosphate and nitrogen.

Potash Corp. will benefit from expanded operational capability and improved demand for potash. The proposed merger with Agrium is also expected to create significant cost and operational synergies. However, the company faces challenging agriculture market fundamentals and headwinds associated with weakness across specific consumer markets including Brazil. It is also exposed to challenges in its nitrogen business and a weak pricing environment.

Let's have a quick look at the company's fourth-quarter 2016 release.

Estimate Trend & Surprise History

Investors should note that the earnings estimate for Potash Corp. for the fourth quarter has decreased by a penny over the last month. The company has missed the Zacks Consensus Estimate in 2 of the trailing 4 quarters with an average negative surprise of 1.01%.

Earnings

Potash Corp.'s earnings came in at 7 cents per share for the quarter. That missed the Zacks Consensus Estimate of 9 cents.

Potash Corporation of Saskatchewan Inc. Price and EPS Surprise

Potash Corporation of Saskatchewan Inc. Price and EPS Surprise | Potash Corporation of Saskatchewan Inc. Quote

Revenues

Potash Corp. reported net sales of $928 million. That missed the Zacks Consensus Estimate of $1,028 million.

Key Developments to Note

Potash Corp. expects full-year 2017 earnings to be in the range of 35 cents to 55 cents per share that includes merger related charges of 5 cents per share. The company expects total potash sales volume to be in the range of 8.7-9.4 million tons in 2017. Capital expenditures for the year are projected at $600 million.

Zacks Rank

Currently, Potash Corp. has a Zacks Rank #3 (Hold).

Market Reaction

Potash Corp's shares fell 4.3% in pre-market trading . 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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Potash Corporation of Saskatchewan Inc. (POT): Free Stock Analysis 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.

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