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Potash Corporation Of Saskatchewan (POT – 53-5/16) is the world's leading producer of a fertilizer that contains potassium, nitrogen, and phosphate. Fertilizer represents around 70 percent of the company's total sales.
Today, POT is in the news after announcing that it should earn 70 cents per share in the third quarter. This is well above the consensus estimate provided by First Call, which expected quarterly earnings of around 41 cents per share. POT officials cited a 40-percent increase in nitrogen prices as reason for this impending upside surprise. The company should report its earning figures at the end of October.
POT shares have surged over nine percent on this news, gapping over four points higher out of the gate. This move has taken the stock above its 10-day and 20-day moving averages for the first time since August 22. Additionally, the shares have inched back above their 10-month and 20-month moving averages. <