NEW YORK (TheStreet) -- Shares of Potash Corp. (POT) are falling 7.06% to $15.94 on heavy trading volume Thursday afternoon after the company posted lower-than-anticipated revenue for the 2016 second quarter and slashed its guidance and dividend.
Before today's market open, the Canadian fertilizer giant said revenue plunged 39% to $1.05 billion from last year. Analysts were expecting revenue of $1.18 billion.
Adjusted earnings of 18 cents per share matched Wall Street's estimates.
For 2016, Potash now forecasts earnings per share between 40 cents and 55 cents, down from its prior view of 60 cents to 80 cents disclosed in April, Reuters noted. Analysts are modeling earnings of 63 cents per share for the year.
In the third quarter, the company sees earnings per share between 5 cents and 10 cents, while analysts are looking for earnings of 14 cents per share.
Additionally, Potash intends to reduce its quarterly dividend to 10 cents per share from 25 cents per share.
"We believe the uncertainty that weighed on potash market sentiment is now lifting and a recovery is beginning," CEO Jochen Tilk said in a statement.
The price of the crop nutrient has dived to its lowest in about 10 years, pressured by excessive mining capacity and weaker demand in key export markets, Reuters noted.
About 20.51 million of the company's shares were traded today vs. its average volume of 9.9 million shares per day.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C- on the stock.
The primary factors that have impacted the rating are mixed. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that were evaluated.
But the team also finds weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: POT