PotashCorp’s (POT) sales are distributed equally among its three product segments: Nitrogen, Phosphorous, and Potassium. PotashCorp’s overall sales have been following a downward trend over the past five years, and all three product segments have contributed to this decline. Will 2017 be any different? Let’s look at what analysts estimate.
For 1Q17, Wall Street analysts estimate PotashCorp to report sales of $1.04 billion, which would be a 14% decline from the sales of $1.21 billion in the corresponding quarter a year ago in 1Q16. While PotashCorp like Mosaic (MOS), Agrium (AGU), and CF Industries (CF) are highly affected by seasonality, it’s helpful to look at sales on a 12-month basis before we draw a conclusion.
For the next 12 months, Wall Street analysts are estimating PotashCorp sales to come in at $4.2 billion. In comparison to the $4.5 billion in 2016, fiscal 2017 sales are estimated to fall 5% year-over-year.
Sales are a function of shipment and realized prices, and much of the weakness in the sales and earnings of fertilizer producers has stemmed from weakness in prices as opposed to shipments. The demand for potash products (SOIL) has continued to be strong.
Next, we’ll discuss gross margin estimates for PotashCorp.