Intrepid Potash (IPI) Reports First Quarter Loss, Top Revenue Estimates – May 8, 2024

Fearless Potash (IPI Free Report reported quarterly loss of $0.14 per share versus the Zacks Consensus Estimate of $0.04. For comparison, a year earlier earnings per share were $0.37. These numbers have been adjusted for one-off items.

This quarterly report presented an earnings surprise of -450%. A quarter ago, it was expected that this potash and fertilizer maker would post a loss of $0.21 per share when it actually produced a loss of $0.41, delivering a surprise of -95.24%.

The company has failed to beat consensus EPS estimates over the last four quarters.

Intrepid Potash, which belongs to the Zacks Fertilizers industry, posted revenues of $66.46 million for the quarter ended March 2024, surpassing the Zacks Consensus Estimate by 5.71%. For comparison, revenues from a year ago amounted to $75.33 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the immediate share price movement based on the recently-released numbers and future earnings expectations will largely depend on management’s commentary on the earnings call.

Intrepid Potash shares have lost about 10.7% year-to-date compared to the S&P 500’s gain of 8.8%.

What’s next for Intrepid Potash?

Although Intrepid Potash has underperformed the market this year, the question that arises for investors is: what’s next for the company’s shares?

There are no simple answers to this key question, but one reliable measure that can help investors address this issue is the company’s earnings prospects. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of earnings release, the estimate revision trend for Intrepid Potash is: mixed. While the magnitude and direction of estimate revisions may change following the company’s just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) stock. Therefore, the company’s stock is expected to perform in line with the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the next quarters and the current fiscal year change in the coming days. The current consensus EPS estimate is -$0.10 on revenue of $58.63M for the coming quarter and -$0.07 on revenue of $209.09M for the current fiscal year.

Investors should be aware that the outlook for the industry may also have a significant impact on share prices. In terms of the Zacks Industry Rank, Fertilizers is currently in the bottom 18% of over 250 Zacks industries. Our research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the broader Zacks Basic Materials sector, McEwen (MUX Free Report has not yet reported results for the quarter ending March 2024. Results are expected to be released on May 9.

The gold and silver mining company is expected to report quarterly loss of $0.03 per share in its upcoming report, representing a year-over-year change of +78.6%. The consensus EPS estimate for the quarter has not changed over the last 30 days.

McEwen’s revenue is expected to be $39.8 million, up 14.5% from the same quarter last year.

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