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CF Industries (CF) to Post Q4 Earnings: What's in the Cards?

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CF Industries Holdings, Inc. (CF - Free Report) is set to release fourth-quarter 2019 results on Feb 12, after market close.

Benefits from higher prices of nitrogen fertilizers are likely to get reflected in the company’s fourth-quarter results. Persistent demand for urea from Brazil and India is also expected to have boosted margins in the to-be-reported quarter.

The stock has inched up 0.5% in the past year against the industry’s 15.1% decline.



Let’s see how things are shaping up for the upcoming announcement.

Some Factors at Play in Q4

CF Industries' fourth-quarter performance is likely to have gained from higher prices of nitrogen fertilizers. Tighter global nitrogen supply and demand balance are driving nitrogen prices.

Moreover, lower natural gas prices provide additional upside to the company. The nitrogen business is enjoying the benefit of abundant natural gas supply. The benefits of lower natural gas costs are also likely to have supported fourth-quarter margins.

Also, favorable demand for urea from Brazil and India likely supported results in the to-be-reported quarter.

What do the Estimates Indicate?

The Zacks Consensus Estimate for CF Industries' fourth-quarter total sales is currently pegged at $1,058 million, which suggests 6.5% decline year over year.

For the fourth quarter, the Zacks Consensus Estimate for total sales in the Ammonia segment is currently pegged at $287 million. The figure suggests 14.8% increase on a year-over-year basis.

The Zacks Consensus Estimate for total sales in the Granular Urea segment is currently pegged at $328 million, which suggests a fall of 4.9% year over year.

The consensus mark for sales in the urea ammonium nitrate solution (UAN) segment is currently pegged at $299 million, which indicates a decline of 12.6% year over year.

The Zacks Consensus Estimate for total sales in the ammonium nitrate (AN) segment is currently pegged at $106 million, which suggests a rise of 9.3% year over year.

What the Zacks Model Says

Our proven model doesn’t conclusively predict an earnings beat for CF Industries this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.

Earnings ESP: Earnings ESP for CF Industries is 0.00%. The Most Accurate Estimate and the Zacks Consensus Estimate are both currently pegged at 26 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: CF Industries currently carries a Zacks Rank #3 (Hold).

CF Industries Holdings, Inc. Price and EPS Surprise

 

CF Industries Holdings, Inc. Price and EPS Surprise

CF Industries Holdings, Inc. price-eps-surprise | CF Industries Holdings, Inc. Quote

 

Stocks Poised to Beat Estimates

Here are some companies in the basic materials space you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:

Bunge Limited (BG - Free Report) , slated to release fourth-quarter 2019 earnings on Feb 12, has an Earnings ESP of +18.18% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cleveland-Cliffs Inc. (CLF - Free Report) , scheduled to release fourth-quarter 2019 earnings on Feb 20, has an Earnings ESP of +29.17% and carries a Zacks Rank #3.

AK Steel Holding Corporation , scheduled to release fourth-quarter 2019 earnings on Feb 20, has an Earnings ESP of +11.11% and carries a Zacks Rank #3.

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