Israel Chemicals Ltd. (NYSE:ICL) is currently under the scope of several analysts, after it reported a profit in its FY2015. The report indicated an EPS of $0.4, which was up by $0.03 from the preceding year, but still lower than its 5-year high of $1.19. Analysts now anticipate that the company might issue a yearly dividend to its stock holders. As a result analysts at Zacks have given the stock a hold rating.
The FY2015 had beat earnings estimates, from several analysts and as a result brokerage firms have revised their target price and EPS for the current quarter. It is now expected that ICL would report an EPS of $0.13 for its 1Q2016. Analysts also expect ICL to reach a target price of $6.13.
The highlight of the FY2015 was that ICL had been successful in reporting a growth in EPS, after 3-years of decline. This was true even after the company’s margins were narrowed slightly from 33.92% to 33.36%. The FY2015 also showed that the company had grown more efficient and was making use of one time sales to drive profits. Improvements were particularly observed in the 4Q2015, $0.09 up from a year earlier. The figures did not include revenues from one time sales.
The CEO at ICL, Stefan Borgas, stated that efficiency initiatives at the company were key factors in delivering profits. He also highlighted that the company expects to continue these initiatives through 2016. Added to this, he also pointed out that the initiatives had been specifically targeted at the production of Potash, from the Dead Sea project, which had led to record production levels. Even though the conditions in the international market are fairly depressed, ICL believes that it can hold on to its performance and drive further profitability. The CEO also stressed on the need to balance commodity and specialty business.
Israel Chemicals Ltd. (NYSE:ICL) lost 0.25% during the February 18 session to reach a close at a share price of $4.03.