Potash Earnings Preview

Potash Corp. Of Saskatchewan (NYSE: POT), the world's largest maker of its namesake fertilizer, reports fourth-quarter results Thursday before the bell and analysts are expecting a profit of 88 cents per share on revenue of $2.09 billion. A year earlier, Potash earned 59 cents on revenue of $1.81 billion. Current EPS estimates range from 68 cents to 97 cents while revenue estimates range from $1.86 billion to $2.26 billion. The EPS consensus has fallen from $1.05 90 days ago and 96 cents 60 days ago. A month ago, the consensus estimate was 92 cents.On Wednesday, Dahlman Rose lowered its rating on Canada-based Potash to Sell from Hold. Potash recently announced the shutdown of its Allan mine as a way of adjusting inventory levels, but some analysts have speculated fertilizer makers are scaling back production in an effort to protect margins. OAO Uralkali, Russia's biggest fertilizer producer, announced an 8% production cut earlier this week.Potash recently announced temporary shutdowns at some of its Canadian mines, representing just under 10% of its operating capacity, according to the Globe and Mail. If Potash can keep its global consumption forecast in the 60 million ton range, investors will be pleased, but some analysts believe the company will reduce its consumption forecast to 55 million tons.On Wednesday, Potash said it will double its quarterly dividend to 14 cents from 7 cents.