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CF Industries Q3 Earnings and Sales Beat on Higher Selling Prices
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CF Industries Holdings, Inc. (CF - Free Report) reported third-quarter 2024 earnings of $1.55 per share, up from 85 cents in the year-ago quarter. The figure surpassed the Zacks Consensus Estimate of $1.05.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Net sales rose around 8% year over year to $1,370 million in the quarter, beating the Zacks Consensus Estimate of $1,213.9 million.
Average selling prices in the third quarter were higher year over year due to increased average selling prices for ammonia from lower global supply availability partly resulting from lower natural gas availability in Trinidad and Egypt. Sales volumes were flat year over year as higher ammonia sales volumes were offset by lower Urea Ammonium Nitrate (UAN) sales volumes.
CF Industries Holdings, Inc. Price, Consensus and EPS Surprise
Net sales in the Ammonia segment climbed 50% year over year to $353 million in the reported quarter, beating our estimate of $219.5 million. Ammonia adjusted gross margin per ton fell in the first nine months of 2024 from the same period in 2023, mostly due to lower average selling prices and increased maintenance expenses, which were slightly offset by lower realized natural gas costs.
Sales in the Granular Urea segment increased around 8% year over year to $388 million, topping our estimate of $326.8 million. Granular urea adjusted gross margin per ton declined in the first nine months of 2024 from the same period in 2023, owing to lower average selling prices and the impact of purchased volumes of granular urea to satisfy customer commitments, which was somewhat offset by reduced realized natural gas costs.
Sales in the UAN segment fell around 7% year over year to $406 million. It was above our estimate of $379.7 million. UAN adjusted gross margin per ton declined in the in the first nine months of 2024 from the same period in 2023, mainly due to lower average selling prices offset by reduced realized natural gas costs.
Sales in the AN segment fell around 7% year over year to $106 million. It was above our estimate of $91.7 million. AN adjusted gross margin per ton declined in first nine months of 2024 from the same period in 2023, owing to lower average selling prices, which were partly offset by lower maintenance and realized natural gas costs.
CF’s Financials
As of Sept. 30, 2024, CF Industries’ cash and cash equivalents were $1,877 million, up 3% sequentially. Long-term debt was $2,970 million, stable sequentially.
The company repurchased 6.1 million shares for $476 million in the reported quarter.
CF’s Outlook
Per CF, nitrogen prices globally were aided in the third quarter by strong global nitrogen demand and reduced supply availability due to natural gas shortages in Trinidad and Egypt, the absence of China from the urea export market and planned maintenance activities in the Middle East. For the near term, management anticipates the global supply-demand balance to remain constructive, as inventories are believed to be below average globally while energy spreads remain significant between North America and high-cost production in Europe.
CF expects capital expenditures for 2024 to be around $525 million.
CF Stock’s Price Performance
Shares of CF Industries have gained 3.2% in the past year compared with the Zacks Fertilizers industry’s 7.9% decline.
Image Source: Zacks Investment Research
CF’s Zacks Rank & Other Key Picks
CF currently carries a Zacks Rank #1 (Strong Buy).
IAMGOLD is scheduled to release third-quarter results on Nov. 7. The Zacks Consensus Estimate for IAG’s third-quarter earnings is pegged at 11 cents. IAG beat the consensus estimate in each of the last four quarters with the average surprise being 200%. Its shares have shot up roughly 125% in the past year.
DuPont is slated to release third-quarter results on Nov. 5. The consensus estimate for DD’s third-quarter earnings is pegged at $1.03. The company's shares have rallied roughly 24% in the past year.
AdvanSix is scheduled to release third-quarter results on Nov. 1. The Zacks Consensus Estimate for ASIX’s third-quarter earnings is pegged at 66 cents. ASIX has gained around 5% in the past year.
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CF Industries Q3 Earnings and Sales Beat on Higher Selling Prices
CF Industries Holdings, Inc. (CF - Free Report) reported third-quarter 2024 earnings of $1.55 per share, up from 85 cents in the year-ago quarter. The figure surpassed the Zacks Consensus Estimate of $1.05.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Net sales rose around 8% year over year to $1,370 million in the quarter, beating the Zacks Consensus Estimate of $1,213.9 million.
Average selling prices in the third quarter were higher year over year due to increased average selling prices for ammonia from lower global supply availability partly resulting from lower natural gas availability in Trinidad and Egypt. Sales volumes were flat year over year as higher ammonia sales volumes were offset by lower Urea Ammonium Nitrate (UAN) sales volumes.
CF Industries Holdings, Inc. Price, Consensus and EPS Surprise
CF Industries Holdings, Inc. price-consensus-eps-surprise-chart | CF Industries Holdings, Inc. Quote
CF’s Segment Highlights
Net sales in the Ammonia segment climbed 50% year over year to $353 million in the reported quarter, beating our estimate of $219.5 million. Ammonia adjusted gross margin per ton fell in the first nine months of 2024 from the same period in 2023, mostly due to lower average selling prices and increased maintenance expenses, which were slightly offset by lower realized natural gas costs.
Sales in the Granular Urea segment increased around 8% year over year to $388 million, topping our estimate of $326.8 million. Granular urea adjusted gross margin per ton declined in the first nine months of 2024 from the same period in 2023, owing to lower average selling prices and the impact of purchased volumes of granular urea to satisfy customer commitments, which was somewhat offset by reduced realized natural gas costs.
Sales in the UAN segment fell around 7% year over year to $406 million. It was above our estimate of $379.7 million. UAN adjusted gross margin per ton declined in the in the first nine months of 2024 from the same period in 2023, mainly due to lower average selling prices offset by reduced realized natural gas costs.
Sales in the AN segment fell around 7% year over year to $106 million. It was above our estimate of $91.7 million. AN adjusted gross margin per ton declined in first nine months of 2024 from the same period in 2023, owing to lower average selling prices, which were partly offset by lower maintenance and realized natural gas costs.
CF’s Financials
As of Sept. 30, 2024, CF Industries’ cash and cash equivalents were $1,877 million, up 3% sequentially. Long-term debt was $2,970 million, stable sequentially.
The company repurchased 6.1 million shares for $476 million in the reported quarter.
CF’s Outlook
Per CF, nitrogen prices globally were aided in the third quarter by strong global nitrogen demand and reduced supply availability due to natural gas shortages in Trinidad and Egypt, the absence of China from the urea export market and planned maintenance activities in the Middle East. For the near term, management anticipates the global supply-demand balance to remain constructive, as inventories are believed to be below average globally while energy spreads remain significant between North America and high-cost production in Europe.
CF expects capital expenditures for 2024 to be around $525 million.
CF Stock’s Price Performance
Shares of CF Industries have gained 3.2% in the past year compared with the Zacks Fertilizers industry’s 7.9% decline.
CF’s Zacks Rank & Other Key Picks
CF currently carries a Zacks Rank #1 (Strong Buy).
Other top-ranked stocks in the Basic Materials space are IAMGOLD Corporation (IAG - Free Report) , DuPont de Nemours, Inc. (DD - Free Report) and AdvanSix Inc. (ASIX - Free Report) . While IAMGOLD carries a Zacks Rank #1, both DuPont and AdvanSix carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
IAMGOLD is scheduled to release third-quarter results on Nov. 7. The Zacks Consensus Estimate for IAG’s third-quarter earnings is pegged at 11 cents. IAG beat the consensus estimate in each of the last four quarters with the average surprise being 200%. Its shares have shot up roughly 125% in the past year.
DuPont is slated to release third-quarter results on Nov. 5. The consensus estimate for DD’s third-quarter earnings is pegged at $1.03. The company's shares have rallied roughly 24% in the past year.
AdvanSix is scheduled to release third-quarter results on Nov. 1. The Zacks Consensus Estimate for ASIX’s third-quarter earnings is pegged at 66 cents. ASIX has gained around 5% in the past year.