Intrepid Potash (IPI) is set to release its second quarter earnings on August 1. Analysts are estimating that it will report EPS of $0.04, which would be an improvement from -$0.03 in Q2 2017.
YTD (year-to-date), Intrepid Potash has underperformed the benchmark VanEck Vectors Agribusiness ETF (MOO), as you can see in the above chart. To put it in perspective, it has returned -12%, and MOO has returned 19 basis points YTD.
The story so far
The stock struggled last year since fertilizer prices failed to show strength in an upward direction. Nutrien (NTR) and Mosaic (MOS) also experienced weaknesses in their stocks, and investors hoped the market environment for fertilizer stocks would improve.
Intrepid Potash took several measures to turn the corner by managing production and resources to optimize its operations in a supply-rich environment. But it had another challenge. The limping market put pressure on the company’s debt covenant. In 2016, it had several amendments with its creditors that threatened its survival. However, it was able to bring down its debt by raising equity finance.
In this series, we’ll look at Intrepid Potash’s top-line and bottom-line expectations for the upcoming second quarter and the next four quarters.