Potash Corp. of Saskatchewan (NYSE: POT) is seeing a recovery this morning. The potash and fertilizer giant posted earnings at $3.93 EPS vs. $3.57 estimates on a 136% revenue gain.
The company is also forecasting in-line guidance for 2008 with a range of $12.00 to $13.00 EPS vs. $12.55 estimates, although likely at the low-end of those estimates. It sees 2008 potash gross margin to exceed the 2007 level by roughly 250%.
The company said recently announced price hikes did take effect and itsees prices higher by $100 per tonne. The company said that withglobal sales growth estimates ranging flat to up 5%, potashfundamentals to remain tight. Potash also noted that it can cutproduction or make delays if demand drops in 2009.
This stock had been beaten endlessly after a runaway move that had beenunprecedented before that. Shares are indicated up almost 3%pre-market to $69.00 after closing at $67.10 yesterday. Its 52-weektrading range is $63.58 to $241.62.
Jon C. Ogg
October 23, 2008