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CVR Partners (UAN) Records Q4 Loss, Revenues Beat Estimates
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CVR Partners (UAN - Free Report) posted a loss of 13 cents per share in the fourth quarter of 2016, versus a profit of 26 cents reported a year ago. Analysts polled by Zacks were expecting earnings of 3 cents per share on an average for the quarter.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) were $18.3 million in the reported quarter, down from $28.5 million recorded a year ago.
The company posted revenues of $84.9 million in the quarter, up around 29% year over year. Revenues marginally beat the Zacks Consensus Estimate of $84.7 million.
CVR Partners, LP Price, Consensus and EPS Surprise
CVR Partners produced 207,600 tons of ammonia and purchased an additional 2,000 tons in the reported quarter of which 62,600 net tons were available for sale while the rest was upgraded to other fertilizers including 330,700 tons of UAN.
Consolidated average realized gate prices for urea ammonium nitrate (“UAN”) and ammonia were $147 per ton and $352 per ton, respectively, in the reported quarter.
Financials
CVR Partners ended 2016 with cash and cash equivalents of $55.6 million, up around 11% year over year. Total debt was $623.1 million, a roughly five-fold year over year rise.
CVR Partners has decided not to pay any cash distribution for the fourth quarter of 2016.
Outlook
The company said that it is seeing a considerable improvement in nitrogen fertilizer pricing (for deliveries during first-half 2017) since Dec 2016, driven by the delay of additional supply coming onstream from new and expanded U.S. production facilities, reduced levels of imports into the U.S. and the expectation of a strong spring corn planting season in the U.S.
Price Performance
CVR Partners has outperformed the Zacks categorized Fertilizers industry in the past three months. The company’s shares have gained around 13.2% over this period, compared with roughly 7.8% gain recorded by the industry.
Zacks Rank & Key Picks
CVR Partners currently carries a Zacks Rank #3 (Hold).
Better-ranked companies in the basic materials space include Methanex Corporation (MEOH - Free Report) , Albemarle Corporation (ALB - Free Report) and The Scotts Miracle-Gro Company (SMG - Free Report) .
Albemarle holds a Zacks Rank #2 (Buy) and has an expected long-term growth of 10%.
Scotts Miracle-Gro holds a Zacks Rank #2 and has an expected long-term growth of 12.4%.
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CVR Partners (UAN) Records Q4 Loss, Revenues Beat Estimates
CVR Partners (UAN - Free Report) posted a loss of 13 cents per share in the fourth quarter of 2016, versus a profit of 26 cents reported a year ago. Analysts polled by Zacks were expecting earnings of 3 cents per share on an average for the quarter.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) were $18.3 million in the reported quarter, down from $28.5 million recorded a year ago.
The company posted revenues of $84.9 million in the quarter, up around 29% year over year. Revenues marginally beat the Zacks Consensus Estimate of $84.7 million.
CVR Partners, LP Price, Consensus and EPS Surprise
CVR Partners, LP Price, Consensus and EPS Surprise | CVR Partners, LP Quote
Operational Statistics
CVR Partners produced 207,600 tons of ammonia and purchased an additional 2,000 tons in the reported quarter of which 62,600 net tons were available for sale while the rest was upgraded to other fertilizers including 330,700 tons of UAN.
Consolidated average realized gate prices for urea ammonium nitrate (“UAN”) and ammonia were $147 per ton and $352 per ton, respectively, in the reported quarter.
Financials
CVR Partners ended 2016 with cash and cash equivalents of $55.6 million, up around 11% year over year. Total debt was $623.1 million, a roughly five-fold year over year rise.
CVR Partners has decided not to pay any cash distribution for the fourth quarter of 2016.
Outlook
The company said that it is seeing a considerable improvement in nitrogen fertilizer pricing (for deliveries during first-half 2017) since Dec 2016, driven by the delay of additional supply coming onstream from new and expanded U.S. production facilities, reduced levels of imports into the U.S. and the expectation of a strong spring corn planting season in the U.S.
Price Performance
CVR Partners has outperformed the Zacks categorized Fertilizers industry in the past three months. The company’s shares have gained around 13.2% over this period, compared with roughly 7.8% gain recorded by the industry.
Zacks Rank & Key Picks
CVR Partners currently carries a Zacks Rank #3 (Hold).
Better-ranked companies in the basic materials space include Methanex Corporation (MEOH - Free Report) , Albemarle Corporation (ALB - Free Report) and The Scotts Miracle-Gro Company (SMG - Free Report) .
Methanex has an expected long-term growth of 15% and sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle holds a Zacks Rank #2 (Buy) and has an expected long-term growth of 10%.
Scotts Miracle-Gro holds a Zacks Rank #2 and has an expected long-term growth of 12.4%.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>