We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Fertilizers Stock Earnings to Watch on Feb 17: MOS, NTR & CF
Read MoreHide Full Article
A few major fertilizer companies are lined up to report their quarterly numbers tomorrow. Fertilizer companies are expected to have benefited, in the fourth quarter, from higher demand for crop nutrients in major markets. While the coronavirus pandemic stung a vast spectrum of industries last year, agriculture was left relatively unscathed given the sustained rise in food demand globally.
Healthy levels of corn planting are likely to have driven fertilizer demand in North America in the fourth quarter. Demand in the United States is likely to have fueled by a strong fall application season and solid farm income. Strong farmer economics are also expected to have supported demand in major markets such as Brazil and India. Strong global demand coupled with tightened supply also provided a boost to crop commodity prices in the December quarter with prices of corn and soybean rallying.
Meanwhile, phosphate markets are likely to have remained robust in the fourth quarter on solid demand and pricing dynamics. Tight availability along with firm demand is driving up phosphate prices globally. Potash prices have also strengthened on the back of robust global demand. Strong fall applications are likely to have spurred up demand for potash in North America and China in the fourth quarter. Higher crop prices are also expected to have supported demand for potash in China and India.
However, prices of Nitrogen remain under pressure amid a supply glut. Increased global supply availability due to higher operating rates along with lower global energy prices are exerting pressure on nitrogen prices. Pricing weakness was witnessed during the first three quarters of 2020 and is likely to have continued in the December quarter. Nevertheless, demand for nitrogen fertilizer remains healthy in major markets. Global nitrogen requirement is being driven by demand in North America, India and Brazil. Demand for urea imports into Brazil and India remains favorable.
Per the Zacks industry classification, the fertilizer industry falls under the broader Basic Materials sector. Basic Materials is among the sectors that are expected to deliver double-digit earnings growth in the fourth quarter. Overall earnings for the sector are projected to rise 22.7% on 1.6% higher revenues, per the latest Earnings Trends. The projections reflect a marked improvement from an 11.5% decline in earnings on an 8.2% drop in revenues witnessed in the third quarter.
We take a look at three fertilizer companies that are gearing up to report their Q4 results on Feb 17.
The Mosaic Company (MOS - Free Report) will report results after the closing bell. Our proven model predicts an earnings beat for the company this time around. This is because it has an Earnings ESP of +8.61% and a Zacks Rank #3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Zacks Consensus Estimate for revenues for the fourth quarter for Mosaic is currently pegged at $2,303 million. The consensus estimate for earnings is 24 cents.
The company surpassed the Zacks Consensus Estimate in two of the trailing four quarters while missed twice. In this timeframe, it delivered a negative earnings surprise of around 610.1%, on average.
Mosaic is likely to have benefited from higher demand across its markets and increased prices in the quarter to be reported. It is expected to have gained from higher sales volumes in its Phosphates and Potash units in the quarter. (Read more: Mosaic to Report Q4 Earnings: What's in the Offing?)
The company beat the Zacks Consensus Estimate in two of the trailing four quarters while missed twice. In this timeframe, it delivered a negative earnings surprise of around 8.4%, on average.
The Zacks Consensus Estimate for revenues for the fourth quarter is currently pegged at $3,577.7 million. The consensus estimate for earnings stands at 15 cents.
The company is likely to have benefited from solid demand and higher prices for phosphate and potash. However, maintenance turnarounds across some of its mines are likely to have pushed costs higher in the quarter.
CF Industries Holdings, Inc. (CF - Free Report) will report results after the bell. Our proven model does not conclusively predict an earnings beat for the company. This is because it has an Earnings ESP of -52.38% and a Zacks Rank #3.
The Zacks Consensus Estimate for revenues for the fourth quarter for CF Industries is currently pegged at $984.2 million. The consensus estimate for earnings is 8 cents.
The company surpassed the Zacks Consensus Estimate in two of the trailing four quarters while missed twice. In this timeframe, it delivered a negative earnings surprise of around 66.1%, on average.
The company’s fourth-quarter results are likely to reflect the benefits of higher demand for nitrogen fertilizers and lower natural gas costs. However, weak nitrogen prices might have affected margins. (Read more: CF Industries to Post Q4 Earnings: What's in the Cards?)
CF Industries Holdings, Inc. Price and EPS Surprise
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Fertilizers Stock Earnings to Watch on Feb 17: MOS, NTR & CF
A few major fertilizer companies are lined up to report their quarterly numbers tomorrow. Fertilizer companies are expected to have benefited, in the fourth quarter, from higher demand for crop nutrients in major markets. While the coronavirus pandemic stung a vast spectrum of industries last year, agriculture was left relatively unscathed given the sustained rise in food demand globally.
Healthy levels of corn planting are likely to have driven fertilizer demand in North America in the fourth quarter. Demand in the United States is likely to have fueled by a strong fall application season and solid farm income. Strong farmer economics are also expected to have supported demand in major markets such as Brazil and India. Strong global demand coupled with tightened supply also provided a boost to crop commodity prices in the December quarter with prices of corn and soybean rallying.
Meanwhile, phosphate markets are likely to have remained robust in the fourth quarter on solid demand and pricing dynamics. Tight availability along with firm demand is driving up phosphate prices globally. Potash prices have also strengthened on the back of robust global demand. Strong fall applications are likely to have spurred up demand for potash in North America and China in the fourth quarter. Higher crop prices are also expected to have supported demand for potash in China and India.
However, prices of Nitrogen remain under pressure amid a supply glut. Increased global supply availability due to higher operating rates along with lower global energy prices are exerting pressure on nitrogen prices. Pricing weakness was witnessed during the first three quarters of 2020 and is likely to have continued in the December quarter. Nevertheless, demand for nitrogen fertilizer remains healthy in major markets. Global nitrogen requirement is being driven by demand in North America, India and Brazil. Demand for urea imports into Brazil and India remains favorable.
Per the Zacks industry classification, the fertilizer industry falls under the broader Basic Materials sector. Basic Materials is among the sectors that are expected to deliver double-digit earnings growth in the fourth quarter. Overall earnings for the sector are projected to rise 22.7% on 1.6% higher revenues, per the latest Earnings Trends. The projections reflect a marked improvement from an 11.5% decline in earnings on an 8.2% drop in revenues witnessed in the third quarter.
We take a look at three fertilizer companies that are gearing up to report their Q4 results on Feb 17.
The Mosaic Company (MOS - Free Report) will report results after the closing bell. Our proven model predicts an earnings beat for the company this time around. This is because it has an Earnings ESP of +8.61% and a Zacks Rank #3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Zacks Consensus Estimate for revenues for the fourth quarter for Mosaic is currently pegged at $2,303 million. The consensus estimate for earnings is 24 cents.
The company surpassed the Zacks Consensus Estimate in two of the trailing four quarters while missed twice. In this timeframe, it delivered a negative earnings surprise of around 610.1%, on average.
Mosaic is likely to have benefited from higher demand across its markets and increased prices in the quarter to be reported. It is expected to have gained from higher sales volumes in its Phosphates and Potash units in the quarter. (Read more: Mosaic to Report Q4 Earnings: What's in the Offing?)
The Mosaic Company Price and EPS Surprise
The Mosaic Company price-eps-surprise | The Mosaic Company Quote
Nutrien Ltd. (NTR - Free Report) will report results after the bell. Our proven model does not conclusively predict an earnings beat for the company. This is because it has an Earnings ESP of -1.67% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company beat the Zacks Consensus Estimate in two of the trailing four quarters while missed twice. In this timeframe, it delivered a negative earnings surprise of around 8.4%, on average.
The Zacks Consensus Estimate for revenues for the fourth quarter is currently pegged at $3,577.7 million. The consensus estimate for earnings stands at 15 cents.
The company is likely to have benefited from solid demand and higher prices for phosphate and potash. However, maintenance turnarounds across some of its mines are likely to have pushed costs higher in the quarter.
Nutrien Ltd. Price and EPS Surprise
Nutrien Ltd. price-eps-surprise | Nutrien Ltd. Quote
CF Industries Holdings, Inc. (CF - Free Report) will report results after the bell. Our proven model does not conclusively predict an earnings beat for the company. This is because it has an Earnings ESP of -52.38% and a Zacks Rank #3.
The Zacks Consensus Estimate for revenues for the fourth quarter for CF Industries is currently pegged at $984.2 million. The consensus estimate for earnings is 8 cents.
The company surpassed the Zacks Consensus Estimate in two of the trailing four quarters while missed twice. In this timeframe, it delivered a negative earnings surprise of around 66.1%, on average.
The company’s fourth-quarter results are likely to reflect the benefits of higher demand for nitrogen fertilizers and lower natural gas costs. However, weak nitrogen prices might have affected margins. (Read more: CF Industries to Post Q4 Earnings: What's in the Cards?)
CF Industries Holdings, Inc. Price and EPS Surprise
CF Industries Holdings, Inc. price-eps-surprise | CF Industries Holdings, Inc. Quote
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>