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

 

Potash Corp. benefits 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 is exposed to a weak pricing environment.

 

Let’s have a quick look at the company’s third-quarter 2017 release.

 

 

Investors should note that the earnings estimate for Potash Corp. for the third quarter has remained stable over the last month. The company has beaten the Zacks Consensus Estimate in two of the trailing four quarters, while missing the other two, with an average positive surprise of 18.5%.

 

 

Potash Corp.’s adjusted earnings came in at 9 cents per share for the third quarter that missed the Zacks Consensus Estimate of 12 cents.

Potash Corporation of Saskatchewan Inc. Price and EPS Surprise

 

Potash Corp.'s adjusted net sales were $1,062 million that beat the Zacks Consensus Estimate of $1,011 million.

 

 

Potash Corp. now expects full-year 2017 earnings to be in the range of 48 cents to 54 cents per share that includes merger related charges of 8 cents per share with 5 cents being expected in the fourth quarter. The company has revised total potash sales volume expectations and now expects sales in the range of 9.1-9.3 million tons (compared with 9-9.4 million tons expected earlier) in 2017. Capital expenditures for the year are projected at roughly $600 million.

 

 

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

 

 

Potash Corp.’s shares were down 3.9% 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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