(POT) - Potash Corporation of Saskatchewan, Inc - estimates for this year and next have jumped over the past 60 days

Potash Corporation of Saskatchewan, Inc. (POT), which was first presented as a Growth and Income pick on Oct 24, is up 25%. Third-quarter earnings were the highest for any third quarter in the company’s history. POT raised its full-year profit forecast in late October. Consensus estimates have been on the rise. The company has a current dividend yield of 0.42%. 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. Since POT was first presented as a Growth and Income pick on Oct 23, the stock is up an impressive 25%. With consensus earnings estimates trending higher, the company can still proudly call itself a Zacks #1 Rank stock. On Oct 25, POT reported third-quarter profits of $145.2 million, or $1.37 per share. The result matched the consensus estimate; however, it soared past earnings of $1.17 in the prior-year period by 17.1%. It was a record for any third quarter in the company's history. Revenues climbed to $953.5 million from $938.0 million in the third quarter of 2005. POT is scheduled to release its fourth-quarter numbers on Jan 25. In addition to posting solid results for the third quarter, POT raised its earnings forecast for the full year. The company now expects net income to be between $5.70 and $6.00 per share. The outlook was based on the exchange rate of CDN$1.12 for every $1.00. Fourth-quarter profits are projected to come in between $1.50 and $1.75 per share. Looking ahead, President and CEO Bill Doyle stated, "Our ability to use our excess capacity to produce more potash to fill rising demand and capture higher prices on these increased volumes will allow us to do even more to maximize the value of our company for shareholders." Consensus estimates for this year and next have jumped over the past 60 days. Profit forecasts for this year experienced a 17-cent increase to $5.44, while estimates for next year rose to $7.24 from $6.53. Earnings per share are projected to grow 10% over the next 3-5 years. The industry is expected to grow at a 9% clip. On Nov 16, the Board of Directors declared a quarterly cash dividend of 15 cents per share. The dividend is payable on Feb12 to shareholders of record as of Jan 22. POT has a current dividend yield of 0.42%. The company’s return on equity trumps that of the industry average—24% compared to 10%. 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