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PotashCorp Reports 4Q16 Earnings: Stock Falls 3%

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PotashCorp’s earnings were disappointing

On Thursday, January 26, 2017, PotashCorp (POT) reported its 4Q16 and 2016 earnings before the markets opened. The stock closed at $19.26 per share, a fall of 3.0% from the previous day’s close. Obviously, the earnings disappointed the market.

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4Q16 and 2016 earnings

PotashCorp reported diluted EPS (earnings per share) of $0.07, which missed analysts’ estimate of $0.09 per share. EPS fell 71.0%, from $0.24 in 4Q15. For 2016, the company reported diluted EPS of $0.40 against $1.52 in 2015. It was a fall of 74.0% year-over-year.

PotashCorp’s performance may provide a hint about how other companies may perform in their upcoming earnings. Naturally, weak results for PotashCorp affects expectations for other players. Mosaic (MOS), Agrium (AGU), and Intrepid Potash (IPI), which haven’t announced their earnings yet, closed in the red on January 26, 2017. The VanEck Vectors Agribusiness ETF (MOO) fell 1.4% that day.

Series overview

In this series, we’ll see how each of PotashCorp’s segments performed in areas such as shipment volumes and realized prices. These areas are the key drivers for the company’s and the industry’s sales. Toward the end of the series, we’ll look at the margins for each of these segments and company updates as POT enters 2017.

Let’s start by looking at PotashCorp’s overall sales for its three segments: Nitrogen, Phosphate, and Potassium.

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