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CF Industries (CF) earnings lag estimates in the third quarter, sales win

CF Industries Holdings, Inc. CF reported earnings of $438 million, or $2.18 per share, within the third quarter of 2022 in comparison with a lack of $185 million, or 86 cents, within the year-ago quarter.

Excluding one-time objects, earnings got here in at $2.55 per share for the reported quarter, lacking Zacks’ consensus estimate of $3.19.

Internet gross sales jumped 70% year-over-year to $2,321 million within the first quarter. The quantity beat Zacks Consensus’ estimate of $2303.9.

The corporate benefited from increased common promoting costs throughout all segments because of decrease international provide availability. Provide was affected by rising international power prices which led to decrease international working charges and geopolitical elements that disrupted the worldwide fertilizer provide chain.

Gross sales volumes have been increased year-over-year within the mentioned quarter, buoyed by higher availability from elevated manufacturing in addition to increased beginning shares in comparison with the identical quarter final 12 months.

CF Industries Holdings, Inc. Worth, Compatibility & EPS Shock

CF Industries Holdings, Inc. Price chart – consensus – EPS – surprise | CF Industries Holdings, Inc. citation

Revision half

Internet gross sales within the ammonia section elevated 54% year-over-year to $531 million within the cited quarter. Gross sales quantity decreased from the earlier 12 months’s ranges. Common promoting costs elevated within the quarter year-on-year as a result of decrease provide availability.

Gross sales within the granular urea section jumped 78% year-over-year to $689 million. Each common promoting costs and gross sales quantity elevated within the quarter.

Gross sales within the UAN section elevated about 89% over the 12 months to $736 million. Each common promoting costs and gross sales quantity elevated within the quarter.

Gross sales within the AN section have been up 53% year-over-year to $180 million. Gross sales volumes declined year-over-year whereas common promoting costs elevated as provide decreased.

Finance

CF Industries’ money and money equivalents almost tripled over the 12 months to $2,192 million on the finish of the quarter. Lengthy-term debt was $2,965 million on the finish of the quarter, down about 14% 12 months over 12 months.

Internet money offered from working actions was $990 million for the reported quarter, a rise of roughly 44% 12 months over 12 months.

The corporate repurchased about 6.1 million shares for $532 million in the course of the aforementioned quarter. Its board of administrators has licensed a brand new $3 billion share buyback program, which can start upon completion of the prevailing share buyback program and run by way of the top of 2025.

prospects

CF Industries sees the steadiness of worldwide nitrogen provide and demand to stay tight by way of 2025, buoyed by agriculture-led demand and persistently excessive power costs in Europe and Asia.

Nitrogen demand continues to be pushed by the necessity to replenish every firm’s international grain shares. It expects increased crop futures costs and wholesome farm economics to assist increased wheat and maize acreage in 2023 in North America. India is predicted to tender for the acquisition of urea for the rest of 2022 to 2023 to completely meet the rising demand as farmers increase grain manufacturing. CF Industries additionally sees urea exports from China at 1.5-2 million metric tons in 2022.

worth efficiency

CF Industries shares are up 76.4% up to now 12 months in comparison with a 30% rise in industry.

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Zacks Rank & Different Key Picks

CF Industries at the moment holds a Zacks No. 3 (Maintain) score.

Embody top-rated shares value finding out within the core topic space Sociedad Quimica y Minera de Chile SA Sq. meters , Ryerson Holding Firm RYI and Al-Etimad Metal and Aluminum Firm RS.

Sociedad has an anticipated earnings progress price of 530.7% for the present 12 months. Zacks’ consensus estimate of SQM earnings for the present 12 months has been revised up 2.1% up to now 60 days. you may see The full list of Zacks #1 stocks today is here.

Sociedad posted a shock fourth-quarter revenue of about 27.2%. SQM is up about 38% in a 12 months. The corporate at the moment holds a Zacks #1 score.

Ryerson Holding, which at the moment holds Zacks No. 2 (purchase), has an anticipated earnings progress price of 74.2% for the present 12 months. The consensus estimate for RYI’s earnings for the present 12 months has been revised up 3.2% up to now 60 days.

Ryerson Holding’s earnings beat Zacks Consensus’s estimate in every of the following 4 quarters, averaging 28.9%. RYI gained about 15% over the course of a 12 months.

Reliance Metal, which at the moment holds Zacks at quantity two, has an anticipated earnings progress price of 29.7% for the present 12 months. The Zacks consensus estimate for RS earnings for the present 12 months was revised up 0.1% up to now 60 days.

Reliance Metal’s earnings have outpaced the Zacks consensus estimate in every of the final 4 quarters. It has a delayed quarterly earnings shock of about 13.6% on common. RS gained about 24% per 12 months.

Zacks Names “Single Finest Decide to Double”

Out of 1000’s of shares, 5 consultants from Zacks every selected their favourite to skyrocket +100% or extra within the coming months. Of those 5, analysis director Shiraz Mian chooses one with probably the most explosive upside ever.

It is a little-known chemical firm, up 65% from final 12 months, however nonetheless low-cost. With unrelenting demand, excessive earnings estimates for 2022, and $1.5 billion in share buybacks, retail traders can leap in at any time.

This firm can rival or outperform different latest Zacks shares which are set to double like Boston Beer which is up +143.0% in simply over 9 months and NVIDIA which is booming +175.9% in a single 12 months.

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The opinions and opinions expressed listed here are these of the creator and don’t essentially mirror the views and opinions of Nasdaq, Inc.

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