Potash Corp (POT) Misses Q2 Earnings Estimates, Sales Beat

Zacks Investment Research | Jul 27, 2017 09:44PM ET

Potash Corp. (NYSE:POT) recorded net earnings of $201 million or 24 cents per share in second-quarter 2017, up 71.4% from $121 million or 14 cents per share it earned a year ago.

The company’s adjusted earnings came in at 16 cents per share which narrowly missed the Zacks Consensus Estimate of 17 cents.

Net sales (as adjusted) for the quarter increased 7.4% year over year to $1,004 million and surpassed the Zacks Consensus Estimate of $936 million.

Segment Review

Potash: Potash gross margin was $213 million in the reported quarter, up from $123 million in the year-ago period due to increased prices, higher offshore sales volumes and reduced per ton costs. Sales volumes for the segment were 2.4 million tons, up 14.3% year over year. Average realized potash price was $174 per ton, up from the year-ago quarter figure of $154. This improvement reflects continued recovery in global spot prices.

Nitrogen: Gross margin was $68 million in the reported quarter, down from $130 million in the year-ago quarter due to weaker prices and higher U.S. natural gas costs. Sales volumes for the quarter were 1.6 million tons, up 6% due to stronger fertilizer demand. Average realized price of $223 per ton during the quarter was down from the year-ago quarter figure of $244. The decline was due to increased global supply.

Phosphate: Sales volumes rose to 0.6 million tons from the year-ago figure of 0.5 million tons due to stronger North American agriculture demand. The company witnessed negative gross margin of $26 million for the quarter compared with a negative gross margin of $10 million in the year-ago quarter. Average realized phosphate price for the quarter was $407 per ton, down from $485 per ton recorded in the year-ago period owing to lower pricing of all products.

Potash Corporation of Saskatchewan Inc. Price, Consensus and EPS Surprise

Original post

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Written By: Zacks Investment Research

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