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Nutrien's (NTR) Earnings and Revenues Miss Estimates in Q4
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Nutrien Ltd. (NTR - Free Report) recorded earnings of $2.15 per share in the fourth quarter of 2022, reflecting a rise of 1.9% from the year-ago quarter's earnings of $2.11 per share.
NTR posted adjusted earnings of $2.02 per share, down 18.2% from the year-ago quarter’s figure of $2.47. It lagged the Zacks Consensus Estimate of $2.63.
The company’s net sales in the fourth quarter were $7,533 million, which lagged the Zacks Consensus Estimate of $7,549 million. Net sales increased around 3.7% from $7,267 million in the prior-year quarter.
Amid challenges from market uncertainty and supply-chain disruption caused by geopolitical events and a high level of market volatility, particularly in agriculture, energy and fertilizer markets, NTR faced headwinds from lower sales volumes and higher cost inventory. However, through selling price increases across its segments, the company was able to partially offset these headwinds.
Sales in the Nutrien Ag Solutions (Retail) segment rose 5.4% year over year to $4,087 million in the quarter. Sales of crop nutrients increased in the quarter on higher prices. Sales of crop protection products also increased owing to higher selling prices and increased sales of proprietary products.
The Potash division’s sales declined 3% year over year to $1,377 million. Segment performance was driven by higher net realized selling prices on the back of tight supply. However, volumes in North America were impacted by a compressed spring application season.
Sales in the Nitrogen segment were $1,541 million, up around 5.8% year over year. The upside can be attributed to higher net realized selling prices due to robust benchmark prices. However, sales volume declined on gas curtailments and unplanned plant outages.
Sales in the Phosphate segment were $429 million, down 19.4% year over year on the back of lower sales volume due to lower production volumes and compressed spring application season in North America. Higher net selling prices provided support to the segment’s performance in the fourth quarter.
FY22 Results
Earnings for the full-year 2022 were $14.18 per share compared with $5.52 a year ago. Net sales climbed 37% to $37,884 million.
Financials
At the end of 2022, Nutrien had cash and cash equivalents of $901 million, up around 81% year over year. Long-term debt was $8,040 million, up roughly 7% year over year.
Cash provided by operating activities was $4,736 million for the reported quarter.
The company repurchased around 53 million shares in 2022 and an additional 8 million shares in 2023.
Outlook
The company expects adjusted EBITDA of $8.4-$10 billion for 2023. Adjusted EPS has been forecasted in the band of $8.45-$10.65.
The company also sees potash sales volumes between 13.8 million and 14.6 million tons in 2023 due to increased demand for potash in North America and Brazil, partially offsetting supply-chain disruptions. Nitrogen sales volumes are projected in the band of 10.8-11.4 million tons for the year.
Price Performance
Nutrien’s shares have gained 2.8% in the past year compared with a 4.7% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Nutrien currently carries a Zacks Rank #5 (Strong Sell).
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Alpha Metallurgical topped Zacks Consensus Estimate in two of the last four quarters. It delivered a trailing four-quarter earnings surprise of 1.1% on average.
ATI’s shares have gained 68.3% in the past year. The Zacks Consensus Estimate for ATI’s current-year earnings has been revised 2.8% upward in the past 60 days. The company has an earnings growth rate of 10.1% for the current year.
ATI topped Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 32.4% on average.
Nucor’s shares have gained 38.2% in the past year. The Zacks Consensus Estimate for NUE’s current-year earnings has been revised 13% upward in the past 60 days.
Nucor topped Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 7.7% on average.
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Nutrien's (NTR) Earnings and Revenues Miss Estimates in Q4
Nutrien Ltd. (NTR - Free Report) recorded earnings of $2.15 per share in the fourth quarter of 2022, reflecting a rise of 1.9% from the year-ago quarter's earnings of $2.11 per share.
NTR posted adjusted earnings of $2.02 per share, down 18.2% from the year-ago quarter’s figure of $2.47. It lagged the Zacks Consensus Estimate of $2.63.
The company’s net sales in the fourth quarter were $7,533 million, which lagged the Zacks Consensus Estimate of $7,549 million. Net sales increased around 3.7% from $7,267 million in the prior-year quarter.
Amid challenges from market uncertainty and supply-chain disruption caused by geopolitical events and a high level of market volatility, particularly in agriculture, energy and fertilizer markets, NTR faced headwinds from lower sales volumes and higher cost inventory. However, through selling price increases across its segments, the company was able to partially offset these headwinds.
Nutrien Ltd. Price, Consensus and EPS Surprise
Nutrien Ltd. price-consensus-eps-surprise-chart | Nutrien Ltd. Quote
Segment Highlights
Sales in the Nutrien Ag Solutions (Retail) segment rose 5.4% year over year to $4,087 million in the quarter. Sales of crop nutrients increased in the quarter on higher prices. Sales of crop protection products also increased owing to higher selling prices and increased sales of proprietary products.
The Potash division’s sales declined 3% year over year to $1,377 million. Segment performance was driven by higher net realized selling prices on the back of tight supply. However, volumes in North America were impacted by a compressed spring application season.
Sales in the Nitrogen segment were $1,541 million, up around 5.8% year over year. The upside can be attributed to higher net realized selling prices due to robust benchmark prices. However, sales volume declined on gas curtailments and unplanned plant outages.
Sales in the Phosphate segment were $429 million, down 19.4% year over year on the back of lower sales volume due to lower production volumes and compressed spring application season in North America. Higher net selling prices provided support to the segment’s performance in the fourth quarter.
FY22 Results
Earnings for the full-year 2022 were $14.18 per share compared with $5.52 a year ago. Net sales climbed 37% to $37,884 million.
Financials
At the end of 2022, Nutrien had cash and cash equivalents of $901 million, up around 81% year over year. Long-term debt was $8,040 million, up roughly 7% year over year.
Cash provided by operating activities was $4,736 million for the reported quarter.
The company repurchased around 53 million shares in 2022 and an additional 8 million shares in 2023.
Outlook
The company expects adjusted EBITDA of $8.4-$10 billion for 2023. Adjusted EPS has been forecasted in the band of $8.45-$10.65.
The company also sees potash sales volumes between 13.8 million and 14.6 million tons in 2023 due to increased demand for potash in North America and Brazil, partially offsetting supply-chain disruptions. Nitrogen sales volumes are projected in the band of 10.8-11.4 million tons for the year.
Price Performance
Nutrien’s shares have gained 2.8% in the past year compared with a 4.7% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Nutrien currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks to consider in the basic materials space include Alpha Metallurgical Resources, Inc. (AMR - Free Report) , ATI Inc. (ATI - Free Report) and Nucor Corporation (NUE - Free Report) . ATI and NUE currently sport a Zacks Rank #1 (Strong Buy), while AMR carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Alpha Metallurgical’s shares have gained 93.5% in the past year. The Zacks Consensus Estimate for AMR’s current-year earnings has been revised 1.7% upward in the past 60 days. The company has an earnings growth rate of 425% for the current year.
Alpha Metallurgical topped Zacks Consensus Estimate in two of the last four quarters. It delivered a trailing four-quarter earnings surprise of 1.1% on average.
ATI’s shares have gained 68.3% in the past year. The Zacks Consensus Estimate for ATI’s current-year earnings has been revised 2.8% upward in the past 60 days. The company has an earnings growth rate of 10.1% for the current year.
ATI topped Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 32.4% on average.
Nucor’s shares have gained 38.2% in the past year. The Zacks Consensus Estimate for NUE’s current-year earnings has been revised 13% upward in the past 60 days.
Nucor topped Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 7.7% on average.