2Q16 earnings expectations
Intrepid Potash (IPI) is expected to announce its 2Q16 earnings on July 26, 2016. Wall Street analysts are estimating a $0.15 loss per share. The challenging potash pricing environment (MXI) and weak demand, as we saw earlier in this series, have caused the company’s situation to worsen in 2016.
A decline in earnings
With a $0.15 loss per share in 2Q16, the company would report a loss for the fifth consecutive quarter. Compared to a loss per share of $0.08 in 2Q15, the upcoming quarter’s per-share loss would represent a steep decline YoY (year-over-year).
For 2016, the company is expected to report $0.54 loss per share, or a 77% decline in earnings from 2015. However, things appear to improve as we go into 2017. Analysts are estimating Intrepid Potash to report an earnings growth of 59% in 2017.
For 2Q16, Agrium (AGU) is expected to report a 13% decline in earnings per share at $4.10 compared to $4.71 in 2Q15. By comparison, PotashCorp (POT) is expected to report earnings per share of $0.19, which would be a decline of 61% YoY. Mosaic (MOS) is also expected to report a decline in earnings by as much as 87%, to $0.14 per share.
CF Industries (CF), a pure nitrogen fertilizer player, unlike Intrepid Potash, Agrium, and PotashCorp, is also expected to report a decline in earnings per share for 2Q16 at $0.67 per share, or a 58% YoY decline.
Next, let’s look at IPI’s valuation multiple compared to its peers.