Agrium Inc. (USA) (AGU) Earnings: An Early Look

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But Agrium is facing a company-specific challenge in the form of a fight with an activist investor. Hedge fund JANA Partners wants the company to consolidate its retail store network and spin off the retail business, and to boost its dividend rather than reinvesting cash into its business. Agrium argues that its strong stock performance speaks for itself, but JANA thinks the company could have done even better by following its advice.

In Agrium’s earnings report, watch for how the company responds to JANA’s challenge. Shareholders could benefit if the company implements even part of the hedge fund’s recommendations, even if it spurns a closer relationship with JANA going forward.

The article Agrium Earnings: An Early Look originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool has no position in any of the stocks mentioned.

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