(POT) - exceeded analysts' earnings expectations in 10 out of the past 12 quarters by an average margin of 23.8%

Potash Corporation of Saskatchewan, Inc. (POT), a Zacks #1 Rank stock, beat the Street's earnings estimate in 10 out of the past 12 quarters, most recently by 41.7%. Earnings per share are forecasted to grow 10% over the next 3-5 years. The Board of Directors authorized a quarterly dividend of 15 cents per share in mid-September. POT is currently yielding 0.53% and has a return on equity of 24%, compared to the industry average of 2%. Full Analysis Potash Corporation of Saskatchewan, Inc. is the largest fertilizer enterprise, by capacity, producing the three primary plant nutrients: potash, phosphate and nitrogen. Living up to its name, POT is the world's largest potash company, with 22% of the world's overall capacity along with 75% of the world's unused capacity. Furthermore, it is the world's third-largest phosphate producer and fourth-largest nitrogen producer. The company's products are used by fertilizer, feed and industrial customers on six continents. POT exceeded analysts' earnings expectations in 10 out of the past 12 quarters by an average margin of 23.8%. In nine of the 10 quarters, POT managed to surprise by a double-digit percentage. The company is expected to release its third-quarter results on Oct 25. On Jul 27, POT posted second-quarter profits of $1.70 per share. The result represented an impressive 41.7% positive earnings surprise and a 16.4% year-over-year improvement. Continued strong nitrogen and phosphate performance led the way. President and Chief Executive Officer Bill Doyle stated, “This quarter demonstrated the importance of our nitrogen and phosphate operations, as well as the effectiveness of our potash strategy as prices remained strong and we achieved record net income.” For the first half of the year, profits came in at a record $300.6 million, compared to $295.5 million for the first six months of 2005. The company increased revenues and expanded gross margins over the past three years, while growing profits for two years running. Earnings per share are forecasted to grow 10% over the next 3-5 years. The industry is projected to grow 8%. The amount of free cash flow at the company's disposal has been on the rise over the past few years. Consequently, the Board of Directors enhanced shareholder value by declaring a quarterly cash dividend of 15 cents per share on Sep 14. The dividend is payable on Nov 13 to shareholders of record as of Oct 23. POT has a current dividend yield of 0.53% and a five-year average dividend yield of 1.1%. POT has been very efficient generating profits given the resources provided by its stockholders. Its return on equity of 24% is considerably higher when compared to the industry average of 2%. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home