Potash of Saskatchewan Earnings: Here’s Why Investors are Excited Now

Potash Corp. of Saskatchewan, Inc. (NYSE:POT) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 1.56%.

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Potash Corp. of Saskatchewan, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 12.5% to $0.63 in the quarter versus EPS of $0.56 in the year-earlier quarter.

Revenue: Rose 20.27% to $2.1 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Potash Corp. of Saskatchewan, Inc. reported adjusted EPS income of $0.63 per share. By that measure, the company beat the mean analyst estimate of $0.59. It beat the average revenue estimate of $1.82 billion.

Quoting Management: “With farmers around the world motivated to capitalize on the link between fertility and profitability, the first quarter gave us an opportunity to demonstrate our ability to deliver,” said PotashCorp President and Chief Executive Officer Bill Doyle. “We had significant growth in our potash performance as global buyers returned to the market in earnest after taking a brief pause late in 2012. This environment enabled us to deliver earnings near the top end of our guidance and laid the foundation for what we believe will be a successful year.”

Key Stats (on next page)…

Revenue increased 27.89% from $1.64 billion in the previous quarter. EPS increased 21.15% from $0.52 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 $0.91 to a profit $0.89. For the current year, the average estimate has moved down from a profit of $3.19 to a profit of $3.01 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)