JP Morgan lifts PotashCorp EPS to $13.25

25 July 2008 15:32  [Source: ICIS news]

TORONTO (ICIS news)--JP Morgan has raised its 2008 earnings per share (EPS) estimate for PotashCorp to $13.25 from $11.60 to reflect the company's better-than-expected second-quarter results and anticipated further increases in fertilizer prices, it said on Friday.

 

For 2009, JP Morgan lifted its EPS estimate for the Canada-based fertilzer major by 50 cents to $25.

 

Potash and diammonium phosphate (DAP) prices continued to climb, which led to higher than expected earnings in the second quarter, JP Morgan said.

 

PotashCorp reported second-quarter EPS from operations of $2.82, up from 88 cents in the year-ago period and above JP Morgan’s estimate of $2.50, the analysts said.

 

The company had exceeded market estimates and its own guidance for the past several quarters primarily due to better fertilizer price realisation, the analysts added.

 

“We believe the 2009 street consensus for PotashCorp does not capture the magnitude of the benefit of sharply higher prices for potash and DAP,” they said.

 

JP Morgan’s 2008 estimate is above PotashCorp’s $12.00-13.00 guidance.

 

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By: Stefan Baumgarten
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