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This fertilizer maker delivered a negative earnings surprise of 22%, on average, over the trailing four quarters. In the last reported quarter, its negative earnings surprise was 28%. The company’s second-quarter results will likely reflect the benefits of healthy demand for fertilizers. However, weaker fertilizer prices are expected to have affected its performance.
NTR shares have lost 17.7% in the past year compared with the industry’s 21.7% decline.
Image Source: Zacks Investment Research
Let’s see how things have shaped up for this announcement.
What Do the Estimates Indicate?
The Zacks Consensus Estimate for Nutrien’s second-quarter consolidated sales is currently pegged at $11,180 million, calling for a decline of 22.9% from the year-ago quarter’s reported figure.
Our estimate for sales in the Nutrien Ag Solutions segment currently stands at $6,500.8 million, suggesting a 31% year-over-year decline.
The same for sales in the Phosphates segment is currently pegged at $588 million, calling for a year-over-year rise of 14.4%.
Our estimate for sales in the Potash segment is currently pegged at $2,444.3 million, suggesting a year-over-year decline of 8.4%.
We expect sales in the Nitrogen segment to be $1,591.8 million, indicating a year-over-year decline of 15.3%.
A Few Factors to Watch
Nutrien is likely to have benefited from healthy demand for fertilizers in the second quarter, backed by strength in the global agricultural market. It is expected to have gained from high domestic and overseas demand and actions to boost potash production. Strong grower economics and higher crop commodity prices are likely to have supported global potash demand. Nutrien is also likely to have benefited from acquisitions, cost efficiency and increased adoption of its digital platform.
However, NTR is expected to have faced sustained challenges in the form of weak fertilizer prices in the June quarter. Prices of phosphate and potash have declined since the second half of 2022 after reaching peak levels in the first half, influenced by factors such as the Russia-Ukraine conflict and disruptions caused by sanctions in Belarus. Global nitrogen prices have also experienced a decline since the beginning of 2023. Lower prices are expected to have hurt Nutrien's sales and profitability in the second quarter.
Zacks Model
Our proven model does not conclusively predict an earnings beat for Nutrien this season. 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 Nutrien is +0.53%. The Zacks Consensus Estimate for second-quarter earnings is currently pegged at $2.83. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Nutrien currently carries a Zacks Rank #5 (Strong Sell).
Here are some companies in the basic materials space you may want to consider, as our model shows these have the right combination of elements to post earnings beat this quarter:
The Zacks Consensus Estimate for CMP’s fiscal third-quarter earnings is pegged at a loss of 16 cents.
ATI Inc. (ATI - Free Report) , slated to release earnings on Aug 2, has an Earnings ESP of +1.08% and carries a Zacks Rank #2 at present.
The consensus mark for ATI’s second-quarter earnings is currently pegged at 55 cents.
Kinross Gold Corporation (KGC - Free Report) , which is slated to release its earnings on Aug 2, has an Earnings ESP of +2.03% and a Zacks Rank #3 at present.
The consensus estimate for KGC’s second-quarter earnings is currently pegged at 8 cents.
Image: Bigstock
Nutrien (NTR) to Report Q2 Earnings: What's in the Cards?
Nutrien Ltd. (NTR - Free Report) is set to release second-quarter 2023 results on Aug 2, after the closing bell.
This fertilizer maker delivered a negative earnings surprise of 22%, on average, over the trailing four quarters. In the last reported quarter, its negative earnings surprise was 28%. The company’s second-quarter results will likely reflect the benefits of healthy demand for fertilizers. However, weaker fertilizer prices are expected to have affected its performance.
NTR shares have lost 17.7% in the past year compared with the industry’s 21.7% decline.
Image Source: Zacks Investment Research
Let’s see how things have shaped up for this announcement.
What Do the Estimates Indicate?
The Zacks Consensus Estimate for Nutrien’s second-quarter consolidated sales is currently pegged at $11,180 million, calling for a decline of 22.9% from the year-ago quarter’s reported figure.
Our estimate for sales in the Nutrien Ag Solutions segment currently stands at $6,500.8 million, suggesting a 31% year-over-year decline.
The same for sales in the Phosphates segment is currently pegged at $588 million, calling for a year-over-year rise of 14.4%.
Our estimate for sales in the Potash segment is currently pegged at $2,444.3 million, suggesting a year-over-year decline of 8.4%.
We expect sales in the Nitrogen segment to be $1,591.8 million, indicating a year-over-year decline of 15.3%.
A Few Factors to Watch
Nutrien is likely to have benefited from healthy demand for fertilizers in the second quarter, backed by strength in the global agricultural market. It is expected to have gained from high domestic and overseas demand and actions to boost potash production. Strong grower economics and higher crop commodity prices are likely to have supported global potash demand. Nutrien is also likely to have benefited from acquisitions, cost efficiency and increased adoption of its digital platform.
However, NTR is expected to have faced sustained challenges in the form of weak fertilizer prices in the June quarter. Prices of phosphate and potash have declined since the second half of 2022 after reaching peak levels in the first half, influenced by factors such as the Russia-Ukraine conflict and disruptions caused by sanctions in Belarus. Global nitrogen prices have also experienced a decline since the beginning of 2023. Lower prices are expected to have hurt Nutrien's sales and profitability in the second quarter.
Zacks Model
Our proven model does not conclusively predict an earnings beat for Nutrien this season. 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 Nutrien is +0.53%. The Zacks Consensus Estimate for second-quarter earnings is currently pegged at $2.83. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Nutrien currently carries a Zacks Rank #5 (Strong Sell).
Nutrien Ltd. Price and EPS Surprise
Nutrien Ltd. price-eps-surprise | Nutrien Ltd. Quote
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider, as our model shows these have the right combination of elements to post earnings beat this quarter:
Compass Minerals International, Inc. (CMP - Free Report) , slated to release earnings on Aug 8, has an Earnings ESP of +30.16% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks Rank #1 stocks here.
The Zacks Consensus Estimate for CMP’s fiscal third-quarter earnings is pegged at a loss of 16 cents.
ATI Inc. (ATI - Free Report) , slated to release earnings on Aug 2, has an Earnings ESP of +1.08% and carries a Zacks Rank #2 at present.
The consensus mark for ATI’s second-quarter earnings is currently pegged at 55 cents.
Kinross Gold Corporation (KGC - Free Report) , which is slated to release its earnings on Aug 2, has an Earnings ESP of +2.03% and a Zacks Rank #3 at present.
The consensus estimate for KGC’s second-quarter earnings is currently pegged at 8 cents.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.