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How Do These 2 Stocks Look Ahead of Their Quarterly Earnings Reports?

We are in the throes of earnings season, with many companies reporting quarterly earnings this week. Let’s take a look at the most recent results and current expectations for Shaw Communications Inc. (TSX:SJR.B)(NYSE:SJR) and Potash Corporation of Saskatchewan Inc. (TSX:POT)(NYSE:POT).

Shaw’s third-quarter results

Shaw reported third-quarter results on June 28, 2017. The company reported adjusted earnings per share of $0.33, which was in line with the consensus expectations. This beat last year’s third-quarter results by $0.22 per share. The stock boasts a net profit margin of 10.39%, among the most effective in the industry at creating profit. The stock currently trades about midway between its 52-week low of $25.70 and its 52-week high of $30.44.

What are the expectations for Shaw’s fourth quarter?

Current expectations are for Shaw to report earnings of $0.23 per share in its fourth-quarter report today. Last year’s expectations for Q4 were $0.22 per share, so expectations haven’t changed much.

Potash Corporation’s second-quarter results

Potash Corporation reported second-quarter earnings on July 27, 2017. The company reported adjusted earnings per share of U.S.$0.16, which missed the consensus expectation of U.S.$0.18. This also missed 2016’s Q2 results by 11.11%.

The company has a net profit margin of 10.78%, again putting it among the leaders in its industry. The stock currently trades closer to its 52-week high of $26.62 than its 52-week low of $20.68.

Potash Corporation closed a big merger deal in the last quarter with Agrium Inc., so this company hasn’t been resting on its laurels.

What are the expectations for Potash Corporation’s third-quarter results?

Potash Corporation’s fiscal year is different from Shaw’s, so the company will announce third-quarter results today. Current expectations are for Potash Corporation to report earnings of US$0.12 per share. Last year’s expectations for Q3 were US$0.11 per share, so expectations haven’t changed much here either.

Investor takeaway

Big changes aren’t expected for either stock in their earnings reports. Look for results reports today to see if analyst expectations were correct.

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Susan Portelance has no position in any stocks mentioned. Agrium is a recommendation of Stock Advisor Canada.

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