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.
CF Industries' (CF) Earnings In Line, Sales Top Estimates in Q1
Read MoreHide Full Article
CF Industries Holdings, Inc. (CF - Free Report) reported a profit of $883 million or $4.21 per share in the first quarter of 2022, surging from a profit of $151 million or 70 cents in the year-ago quarter. Earnings per share were in line with the Zacks Consensus Estimate.
Net sales jumped around 174% year over year to $2,868 million in the quarter. The figure topped the Zacks Consensus Estimate of $2,596.9 million. The company benefited from higher average selling prices across all segments on reduced supply availability and strong demand. Supply was impacted by higher global energy costs leading to lower global operating rates and geopolitical factors that disrupted the global fertilizer supply chain.
Sales volumes were higher year over year in the reported quarter, helped by greater supply availability from higher capacity utilization rates in North America.
CF Industries Holdings, Inc. Price, Consensus and EPS Surprise
Net sales in the Ammonia segment increased more than three-fold year over year to $640 million in the reported quarter. Sales volume increased from the prior year’s levels on greater supply availability from higher production. Average selling prices in the quarter increased year over year on strong global demand and lower supply availability.
Sales in the Granular Urea segment jumped 92% year over year to $765 million. Average selling prices for urea increased while sales volume declined in the quarter.
Sales in the UAN segment surged more than four-fold year over year to $1,015 million. Sales volume in the quarter were up from prior year’s levels. Average selling prices increased in the quarter.
Sales in the AN segment more than doubled year over year to $223 million. In the first quarter, sales volumes were flat year over year while average selling prices increased on strong demand and reduced supply.
Financials
CF Industries’ cash and cash equivalents increased more than three-fold year over year to $2,617 million at the end of the quarter. Long-term debt was $2,963 million at the end of the quarter, down around 20% year over year.
Cash flow from operations were $1,391 million for the reported quarter, up around 141% year over year.
The company repurchased around 1.3 million shares for $100 million during the first quarter. Its board raised its quarterly dividend by 33% to 40 cents per share.
Outlook
CF Industries sees strong global nitrogen industry dynamics for the foreseeable future with robust global nitrogen demand along with tight nitrogen supply worldwide and wide energy differentials between North America and marginal production in Europe and Asia.
Demand for nitrogen remains strong globally, supported by the need to replenish global grains stocks, per the company. It projects corn plantings in the United States to be 91-93 million acres in 2022. Nitrogen demand in North America is expected to be supported by positive U.S. manufacturing and mining activities. CF Industries also expects India to tender on a regular basis throughout 2022 to meet the demand for urea required to boost grain production. The company also envisions urea consumption to remain strong in Brazil in 2022, aided by high crop prices, anticipated high planted corn acres and improved farm incomes. In Europe, natural gas prices remain elevated partly due to the Russia-Ukraine conflict and the uncertainty about gas flows from Russia, the company noted.
Price Performance
Shares of CF Industries have surged 103.7% in the past year compared with a 56.9% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
CF Industries currently carries a Zacks Rank #1 (Strong Buy).
Other top-ranked stocks worth considering in the basic materials space include Steel Dynamics, Inc. (STLD - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Commercial Metals Company (CMC - Free Report) .
Steel Dynamics, sporting a Zacks Rank #1, has an expected earnings growth rate of 18.5% for the current year. The Zacks Consensus Estimate for STLD's current-year earnings has been revised 32.5% upward over the last 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Steel Dynamics beat the Zacks Consensus Estimate for earnings in each of the last four quarters, the average being roughly 2.5%. STLD has rallied around 45% in a year.
AdvanSix, carrying a Zacks Rank #1, has an expected earnings growth rate of 63.4% for the current year. ASIX's consensus estimate for current-year earnings has been revised 31.9% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 23.6%, on average. ASIX has rallied around 48% in a year.
Commercial Metals, carrying a Zacks Rank #1, has a projected earnings growth rate of 78.2% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 31.9% upward over the past 60 days.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 16%, on average. CMC has gained around 35% in a year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
CF Industries' (CF) Earnings In Line, Sales Top Estimates in Q1
CF Industries Holdings, Inc. (CF - Free Report) reported a profit of $883 million or $4.21 per share in the first quarter of 2022, surging from a profit of $151 million or 70 cents in the year-ago quarter. Earnings per share were in line with the Zacks Consensus Estimate.
Net sales jumped around 174% year over year to $2,868 million in the quarter. The figure topped the Zacks Consensus Estimate of $2,596.9 million. The company benefited from higher average selling prices across all segments on reduced supply availability and strong demand. Supply was impacted by higher global energy costs leading to lower global operating rates and geopolitical factors that disrupted the global fertilizer supply chain.
Sales volumes were higher year over year in the reported quarter, helped by greater supply availability from higher capacity utilization rates in North America.
CF Industries Holdings, Inc. Price, Consensus and EPS Surprise
CF Industries Holdings, Inc. price-consensus-eps-surprise-chart | CF Industries Holdings, Inc. Quote
Segment Review
Net sales in the Ammonia segment increased more than three-fold year over year to $640 million in the reported quarter. Sales volume increased from the prior year’s levels on greater supply availability from higher production. Average selling prices in the quarter increased year over year on strong global demand and lower supply availability.
Sales in the Granular Urea segment jumped 92% year over year to $765 million. Average selling prices for urea increased while sales volume declined in the quarter.
Sales in the UAN segment surged more than four-fold year over year to $1,015 million. Sales volume in the quarter were up from prior year’s levels. Average selling prices increased in the quarter.
Sales in the AN segment more than doubled year over year to $223 million. In the first quarter, sales volumes were flat year over year while average selling prices increased on strong demand and reduced supply.
Financials
CF Industries’ cash and cash equivalents increased more than three-fold year over year to $2,617 million at the end of the quarter. Long-term debt was $2,963 million at the end of the quarter, down around 20% year over year.
Cash flow from operations were $1,391 million for the reported quarter, up around 141% year over year.
The company repurchased around 1.3 million shares for $100 million during the first quarter. Its board raised its quarterly dividend by 33% to 40 cents per share.
Outlook
CF Industries sees strong global nitrogen industry dynamics for the foreseeable future with robust global nitrogen demand along with tight nitrogen supply worldwide and wide energy differentials between North America and marginal production in Europe and Asia.
Demand for nitrogen remains strong globally, supported by the need to replenish global grains stocks, per the company. It projects corn plantings in the United States to be 91-93 million acres in 2022. Nitrogen demand in North America is expected to be supported by positive U.S. manufacturing and mining activities. CF Industries also expects India to tender on a regular basis throughout 2022 to meet the demand for urea required to boost grain production. The company also envisions urea consumption to remain strong in Brazil in 2022, aided by high crop prices, anticipated high planted corn acres and improved farm incomes. In Europe, natural gas prices remain elevated partly due to the Russia-Ukraine conflict and the uncertainty about gas flows from Russia, the company noted.
Price Performance
Shares of CF Industries have surged 103.7% in the past year compared with a 56.9% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
CF Industries currently carries a Zacks Rank #1 (Strong Buy).
Other top-ranked stocks worth considering in the basic materials space include Steel Dynamics, Inc. (STLD - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Commercial Metals Company (CMC - Free Report) .
Steel Dynamics, sporting a Zacks Rank #1, has an expected earnings growth rate of 18.5% for the current year. The Zacks Consensus Estimate for STLD's current-year earnings has been revised 32.5% upward over the last 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Steel Dynamics beat the Zacks Consensus Estimate for earnings in each of the last four quarters, the average being roughly 2.5%. STLD has rallied around 45% in a year.
AdvanSix, carrying a Zacks Rank #1, has an expected earnings growth rate of 63.4% for the current year. ASIX's consensus estimate for current-year earnings has been revised 31.9% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 23.6%, on average. ASIX has rallied around 48% in a year.
Commercial Metals, carrying a Zacks Rank #1, has a projected earnings growth rate of 78.2% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 31.9% upward over the past 60 days.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 16%, on average. CMC has gained around 35% in a year.