Potash Earnings: Weaker Performance

Potash Corp. of Saskatchewan, Inc. (NYSE:POT) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 1.21%.

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Potash Corp. of Saskatchewan, Inc. Earnings Cheat Sheet

Results: Net income decreased -38.36% to $421 million (52 cents per diluted share) in the quarter versus a net gain of $683 million in the year-earlier quarter.

Revenue: Decreased 12.06% to $1.64 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Potash Corp. of Saskatchewan, Inc. reported adjusted net income of 52 cents per share. By that measure, the company missed the mean analyst estimate of $0.58. It missed the average revenue estimate of $1.74 billion.

Quoting Management: “Our fourth-quarter results were adversely affected by weaker performance in all three nutrients as global fertilizer markets paused in the absence of significant immediate needs and amid lack of direction, particularly in phosphate and potash,” said PotashCorp President and Chief Executive Officer Bill Doyle…

…Despite these temporary challenges, we operated with a consistent approach – temporarily slowing potash production and leveraging our diversified product mix in our other nutrients – to best position our company for the expected rebound in fertilizer demand in 2013.”

Key Stats:

Revenue decreased 23.47% from $2.14 billion in the previous quarter. Net income decreased 34.73% from $645 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.77 to a profit $0.68. For the current year, the average estimate has moved down from a profit of $3 to a profit of $2.87 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)