Agrium hits all-time high after raising 2nd-quarter outlook on retail, wholesale performance
NEW YORK (AP) -- Shares of Agrium Inc. rose to an all-time high on Wednesday after it raised its second-quarter outlook.
Before the opening bell, the Canadian fertilizer company raised its second-quarter outlook to between $2.80 per share and $3 per share, citing strong retail and wholesale performance.
The company previously guided for between $1.92 and $2.22 per share for the quarter. Analysts polled by Thomson Financial expect a profit of $2.50 per share.
Shares advanced $7.97, or 8.7 percent, to close at $100.13 after reaching $101.97 in intraday trading.
In a note to investors, Goldman Sachs analyst Edlain Rodriguez said Agrium stands to benefit from higher prices of commodity crops as farmers buy up fertilizer to maximize yield.
In addition, the fertilizer market remains tight as harsh spring weather in the Midwest affected planting there, he said.
"We firmly believe that (agriculture) fundamentals will remain solid in the medium term and Agrium will continue to benefit as it further expands both its U.S. and global base," Rodriguez said.
He reiterated his "Neutral" rating on the company and said his estimates are under review.
Shares of Agrium have nearly tripled from a 52-week low of $34.62 in August.
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