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Potash Corp. (POT) Q2 Earnings Miss, Sales Beat Estimates
July 27, 2017

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Potash Corp. of Saskatchewan, Inc. (POT - Free Report) 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. It is also exposed to a weak pricing environment.

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

Estimate Trend & Surprise History

Investors should note that the earnings estimate for Potash Corp. for the second quarter has decreased over the last month. The company has beaten the Zacks Consensus Estimate in 2 of the trailing 4 quarters with an average negative surprise of 20.00%.

Earnings

Potash Corp.’s adjusted earnings came in at 16 cents per share for the quarter. That missed the Zacks Consensus Estimate of 17 cents.

Revenues

Potash Corp.'s adjusted net sales was $1,004 million. That beat the Zacks Consensus Estimate of $935.9 million.

Key Developments to Note

Potash Corp. expects full-year 2017 earnings to be in the range of 45 cents to 65 cents per share that includes merger related charges of 6 cents per share. The company has revised total potash sales volume and it now expects sales in the range of 9-9.4 million tons (up from 8.9-9.4 million tons) in 2017. Capital expenditures for the year are projected at roughly $600 million.

Zacks Rank

Currently, Potash Corp. has a Zacks Rank #4 (Sell), but that could change following its earnings report which was just released.

Market Reaction

Potash Corp’s shares rose roughly 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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