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PotashCorp Reports 1Q17 Surprise, Stock Jumps

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PotashCorp’s earnings

On April 27, Potash Corporation of Saskatchewan (POT) or PotashCorp released its 1Q17 earnings, reporting EPS (earnings per share) of $0.18, which was almost double the analysts’ consensus estimates for the quarter. The quarterly earnings also doubled its EPS of $0.09 in 1Q16. This positive earnings surprise led to a ~2% jump in the stock after the release of the results.

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How others reacted

During regular trading on April 27, Agrium (AGU) closed 2.3% higher, while Mosaic (MOS) was trading about 11 basis points higher, and CF Industries (CF) closed about 62 basis points higher.

By comparison, the VanEck Vectors Agribusiness (MOO) closed about 29 basis points higher, and the SPDR S&P 500 ETF (SPY) closed about eight basis points higher during regular trading hours on April 27.

Series overview

In this series, we’ll examine how PotashCorp’s segments performed in areas like shipment volumes and realized prices, which are key drivers for the company’s and the industry’s sales. We’ll also look at the margins for each of POT’s segments and a few company updates in 2017, bearing in mind that PotashCorp’s performance may provide a hint about how other companies may perform in their upcoming earnings.

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

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