Shares of Potash Corp of Saskatchew (POT), the world’s largest fertilizer producer, are down about half a percent after the Canadian company reported first-quarter results that topped Wall Street estimates and raised its full-year guidance. In the first quarter, Potash earned $732 million, or 84 cents a share, from $444 million, or 49 cents a share, a year earlier as revenue climbed 30% to $2.2 billion. Analysts were expecting a profit of 80 cents on revenue of $2.01 billion.
Despite the solid results from Potash, the Agricultural Chemical and Fertilizer Stocks Index is flat on the day, a situation that is even more curious when considering the strong guidance Potash issued. The company forecast a full-year profit of $3-$3.40 a share, up from previous guidance $2.80-$3.20 and above the consensus estimate $3.29. For the current quarter, Potash expects to earn 70-90 cents a share. Analysts are expecting 84 cents.
