Hot Stock in the Spotlight: Intrepid Potash (NYSE: IPI)

On Wednesday, Shares of Intrepid Potash (NYSE: IPI) showed the bullish trend with a higher momentum of 0.68% to $2.98. The company traded total volume of 543,826 shares as contrast to its average volume of 645.41K shares. The company has a market value of $372.83M and about 125.11M shares outstanding.

Intrepid Potash, Inc. (Intrepid) (IPI) recently stated its results for the third quarter of 2018.

Key Q3 Takeaways:

  • Net income of $3.40M, or $0.03 per share, a $5.30M increase contrast to prior year third quarter net loss of $1.90M, or $0.02 per share.
  • Cash flow from operations of $14.80M, a $12.20M increase contrast to the prior year third quarter.
  • Total sales of $36.50M, a $2.50M increase contrast to the prior year third quarter.
  • Higher average net realized sales prices per ton and increased by-product sales drove improvements in potash and Trio segment gross margins of $2.10M and $1.00M, respectively, contrast to the prior year third quarter.
  • Water business delivers record quarter with $9.70M in cash received.

Consolidated Results:

Intrepid generated third quarter net income of $3.40M, or $0.03 per share, resulting in year-to-date net income of $4.10M, or $0.03 per share. Consolidated gross margin increased to $9.00M and $23.40M in the third quarter and first nine months of 2018, respectively, contrast to the prior year. Increased net income and gross margin were the result of increased water and by-product sales, improvement in the average net realized sales price per ton of potash, and reduced lower-of-cost-or-market adjustments in the Trio segment.

Cash offered by operating activities increased year over year to $14.80M and $52.90M for the third quarter and first nine months of 2018, respectively. Increases were driven by increased water sales, payments received under a prearranged water commitment, and reduced interest expense.

Liquidity:

Cash offered by operations was $14.80M during the third quarter of 2018 and cash spent on capital investments was $3.80M. As of September 30, 2018, Intrepid had $37.20M in cash and cash equivalents and $25.70M available to borrow under its credit facility.

The Company offered net profit margin of 1.60% while its gross profit margin was 14.10%. ROE was recorded as 0.70% while beta factor was 0.88. The stock, as of recent close, has shown the weekly upbeat performance of 14.62% which was maintained at 14.62% in this year.

Grover Beam

Grover Beam has over 14 years experience in the financial services industry giving him a vast understanding of how news affects the financial markets. He is an active day trader spending the majority of her time analyzing earnings reports and watching commodities and derivatives. He has a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking.

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