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Agriculture Stocks' Q3 Earnings Slated on Nov 2: CF, IPI, BG
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We are well past the midpoint of the third-quarter earnings season, with 291 companies on the S&P 500 index having already reported their quarterly numbers.
The results so far have painted an encouraging picture. Per the latest Earnings Preview, considering the actual results from the S&P 500 members that reported till last Friday, total earnings were up 2.2% year over year on 1.3% higher revenues
Overall Q3 earnings for the S&P 500 index are now expected to rise 2% while revenues are expected to increase 1.4%. If this happens, this reporting cycle will mark the first quarter of earnings growth after five straight quarters of decline for the benchmark index.
In this write-up, we put the spotlight on a few agriculture companies that are schedule to report their third-quarter results on Nov 2.
The agriculture market is not out of the woods and there is a continuous negative sentiment among investors keen on this space. While prices of major crops (such as corn and soybeans) have recovered somewhat lately, they remain at their multi-year lows.
The prevailing softness in agricultural commodity pricing is a concern for fertilizer and agricultural chemicals companies as it is hindering fertilizer use by farmers given the adverse effect of lower crop pricing on growers' income. Lower farm income has a negative influence on growers' nutrient purchasing decisions. Moreover, the crop protection market remains under pressure, in part, due to a slowdown in Brazil.
Fertilizer makers also remain exposed to a difficult pricing environment for the nutrients they sale. Global capacity expansion continues to exert pressure on fertilizer prices. Margins of these companies remain thwarted by a weak nutrient pricing environment.
Let's see what's in store for these three agriculture companies that are set to report their third-quarter numbers on Nov 2.
CF Industries Holdings, Inc. (CF - Free Report) will report after the bell. The company not only carries an unimpressive Zacks Rank #5 (Strong Sell), it also has an Earnings ESP of -80.00%, making an earnings beat unlikely. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
CF Industries missed the Zacks Consensus Estimate in each of the trailing four quarters with an average negative surprise of 29.61%. CF Industries continues to see pricing pressure in its nitrogen business. Nitrogen prices remain under pressure due to elevated supply. A difficult pricing environment is expected to continue weighing on the company’s sales and profits in the September quarter. (Read more: CF Industries Q3 Earnings: Will the Stock Disappoint?)
Bunge Limited (BG - Free Report) will report before the opening bell. The company has an Earnings ESP of -5.62% and a Zacks Rank #4 (Sell), making it difficult to predict an earnings beat. Bunge beat the Zacks Consensus Estimate in two of the last four quarters while it missed twice.
While the above ideas are being shared with the public, other trades are hidden from everyone but selected members. Would you like to peek behind the curtain and view them? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trades >>
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Agriculture Stocks' Q3 Earnings Slated on Nov 2: CF, IPI, BG
We are well past the midpoint of the third-quarter earnings season, with 291 companies on the S&P 500 index having already reported their quarterly numbers.
The results so far have painted an encouraging picture. Per the latest Earnings Preview, considering the actual results from the S&P 500 members that reported till last Friday, total earnings were up 2.2% year over year on 1.3% higher revenues
Overall Q3 earnings for the S&P 500 index are now expected to rise 2% while revenues are expected to increase 1.4%. If this happens, this reporting cycle will mark the first quarter of earnings growth after five straight quarters of decline for the benchmark index.
In this write-up, we put the spotlight on a few agriculture companies that are schedule to report their third-quarter results on Nov 2.
The agriculture market is not out of the woods and there is a continuous negative sentiment among investors keen on this space. While prices of major crops (such as corn and soybeans) have recovered somewhat lately, they remain at their multi-year lows.
The prevailing softness in agricultural commodity pricing is a concern for fertilizer and agricultural chemicals companies as it is hindering fertilizer use by farmers given the adverse effect of lower crop pricing on growers' income. Lower farm income has a negative influence on growers' nutrient purchasing decisions. Moreover, the crop protection market remains under pressure, in part, due to a slowdown in Brazil.
Fertilizer makers also remain exposed to a difficult pricing environment for the nutrients they sale. Global capacity expansion continues to exert pressure on fertilizer prices. Margins of these companies remain thwarted by a weak nutrient pricing environment.
Let's see what's in store for these three agriculture companies that are set to report their third-quarter numbers on Nov 2.
CF Industries Holdings, Inc. (CF - Free Report) will report after the bell. The company not only carries an unimpressive Zacks Rank #5 (Strong Sell), it also has an Earnings ESP of -80.00%, making an earnings beat unlikely. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
CF Industries missed the Zacks Consensus Estimate in each of the trailing four quarters with an average negative surprise of 29.61%. CF Industries continues to see pricing pressure in its nitrogen business. Nitrogen prices remain under pressure due to elevated supply. A difficult pricing environment is expected to continue weighing on the company’s sales and profits in the September quarter. (Read more: CF Industries Q3 Earnings: Will the Stock Disappoint?)
CF INDUS HLDGS Price and EPS Surprise
CF INDUS HLDGS Price and EPS Surprise | CF INDUS HLDGS Quote
Intrepid Potash, Inc. (IPI - Free Report) will report ahead of the bell. The company is expected to come up with a positive earnings surprise as it has an Earnings ESP of +25% and a favorable Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Intrepid Potash missed estimates in three of the last four quarters while it beat once, resulting in an average negative surprise of 45.32%.
INTREPID POTASH Price and EPS Surprise
INTREPID POTASH Price and EPS Surprise | INTREPID POTASH Quote
Bunge Limited (BG - Free Report) will report before the opening bell. The company has an Earnings ESP of -5.62% and a Zacks Rank #4 (Sell), making it difficult to predict an earnings beat. Bunge beat the Zacks Consensus Estimate in two of the last four quarters while it missed twice.
BUNGE LTD Price and EPS Surprise
BUNGE LTD Price and EPS Surprise | BUNGE LTD Quote
Now See Our Private Investment Ideas
While the above ideas are being shared with the public, other trades are hidden from everyone but selected members. Would you like to peek behind the curtain and view them? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trades >>