Potash Corp. of Saskatchewan Whiffs on Revenues

Potash Corp. of Saskatchewan (NYSE: POT  ) reported earnings on Jan. 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Potash Corp. of Saskatchewan whiffed on revenues and missed estimates on earnings per share.

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

Margins shrank across the board.

Revenue details
Potash Corp. of Saskatchewan booked revenue of $1.53 billion. The 11 analysts polled by S&P Capital IQ anticipated a top line of $1.73 billion on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $1.78 billion.

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

EPS details
EPS came in at $0.48. The 27 earnings estimates compiled by S&P Capital IQ predicted $0.58 per share. GAAP EPS of $0.48 for Q4 were 38% lower than the prior-year quarter's $0.78 per share.

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

Margin details
For the quarter, gross margin was 38.3%, 1,170 basis points worse than the prior-year quarter. Operating margin was 30.3%, 1,540 basis points worse than the prior-year quarter. Net margin was 27.5%, 1,090 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.87 billion. On the bottom line, the average EPS estimate is $0.67.

Next year's average estimate for revenue is $8.28 billion. The average EPS estimate is $3.20.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 4,791 members out of 4,955 rating the stock outperform, and 164 members rating it underperform. Among 903 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 876 give Potash Corp. of Saskatchewan 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 Potash Corp. of Saskatchewan is outperform, with an average price target of $47.28.

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