PotashCorp reports second-quarter profit and sales down from year ago

The fertilizer maker reported $0.50 EPS for the quarter, missing the Thomson Reuters consensus estimate of $0.52 by $0.02, Marketbeat.com reports.

Total group revenues fell 9% to $1.731bn, down from $1.892bn over the same period last year, falling short of analysts’ estimates of $1.890bn. It reduced the high end of the guidance, which was previously US$2.05.

Potash Corp./Saskatchewan (NYSE:POT) last released its quarterly earnings data on Thursday, July 30th. Stockholders of record on Friday, July 10th will be paid a $0.38 dividend.

The company’s potash production remained flat at 2.5 million tonnes, while average realized potash price rose 4 percent to $273 per tonne. Shipments to offshore markets increased 18% as improved rail logistics and distribution capabilities led to record Canpotex shipments. Potash Corp./Saskatchewan presently has an average rating of Hold and an average price target of $34.92.

Company has received recommendation from many analysts. The company’s stock had a trading volume of 3,773,274 shares. The 52-week high of Potash Corporation of Saskatchewan Inc. Lower natural-gas costs helped offset the impact on operating earnings but couldn’t wipe it out entirely.

Sales volumes at the company’s third-biggest business, phosphate, fell 20 percent due to absence of production at the Suwannee River plant in Florida, Potash Corp said. The phosphate operations of the Company include the manufacture and sale of phosphate feed liquid and solid phosphate fertilizers and industrial acid, which is found in food products and industrial processes. Analysts forecast that Potash Corp./Saskatchewan will post $1.86 EPS for the current fiscal year. Potash shares have dropped -13.06% in the past 200 days, while the S&P500 has increased 8.56% in the same time. Potash Corp. faces headwinds associated with macroeconomic uncertainties stemming from weakness in markets outside of the U.S. It is also exposed to challenges in its nitrogen business and a volatile pricing environment.

Shares of Potash Corp./Saskatchewan (NYSE:POT) traded up 0.30% during mid-day trading on Friday, reaching $27.14.

The company also narrowed its full-year sales volume estimates for potash to between 9.3 million and 9.6 million tons from previous guidance of 9.2 million to 9.7 million.

“There is a possibility we would do that, specifically on equity investments, so I would not exclude that”, Potash Corp. For nitrogen, higher supply is expected to keep markets subdued this year compared with 2014. Potash has two $500M bonds maturing within the next 30 months, and repaying both bonds would result in an immediate cash burn reduction of $35M per year.

As a results of these expectations, the company revised its 2015 earnings guidance to $1.75-$1.95 per share from $1.75-$2.05 per share expected earlier. Barclays maintains their rating on the shares of Potash Corporation of Saskatchewan Inc. HSBC decreased their price objective on shares of Potash Corp./Saskatchewan from $38.50 to $37.75 and set a buy rating for the company in a research note on Monday, July 20th. While K+S rejected the offer earlier this month, Potash Corp. remains focused on engaging with and having constructive talks with the management of K+S. It noted it hasn’t yet decided to make a formal offer.