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CVR Partners' (UAN) Q2 Earnings Beat Estimates, Sales Fall
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CVR Partners, LP (UAN - Free Report) logged a loss of $16 million or 15 cents per share in the second quarter of 2018, wider than a loss of $4 million or 3 cents per share it recorded a year ago. The reported loss per share was, however, narrower than the Zacks Consensus Estimate of a loss of 24 cents.
CVR Partners raked in net sales of $93 million, down around 5% year over year.
CVR Partners, LP Price, Consensus and EPS Surprise
CVR Partners produced 174,000 tons of ammonia in the second quarter (down from 215,000 tons produced a year ago), of which, 66,000 net tons were available for sale while the rest was upgraded to other fertilizers including 241,000 tons of urea ammonium nitrate ("UAN").
Production in the reported quarter were unfavorably affected by planned and unplanned downtime at the company’s Coffeyville and East Dubuque fertilizer plants.
In the reported quarter, consolidated average realized gate prices for UAN and ammonia were $191 and $348 per ton, respectively, up around 10% and 5% year over year, respectively.
Financials
CVR Partners ended the quarter with cash and cash equivalents of $28.3 million, down around 45% year over year. Total debt slightly increased to $627.4 million in the quarter from $624.5 million a year ago.
Outlook
CVR Partners saw strong demand for nitrogen fertilizer as the weather improved and the 2018 spring planting season ended well. The company believes that nitrogen fertilizer market in the United States has finally adjusted to the new production capacity that came online during the last three years.
Price Performance
Shares of CVR Partners have lost 3.1% over a year, underperforming the industry’s 26.7% rise.
Zacks Rank & Stocks to Consider
CVR Partners currently carries a Zacks Rank #3 (Hold).
KMG Chemicals has an expected long-term earnings growth rate of 28.5%. Its shares have gained roughly 41% over a year.
Methanex has an expected long-term earnings growth rate of 15%. The company’s shares have rallied around 52% in a year.
BHP Billiton has an expected long-term earnings growth rate of 5.3%. Its shares have shot up roughly 24% over a year.
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Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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CVR Partners' (UAN) Q2 Earnings Beat Estimates, Sales Fall
CVR Partners, LP (UAN - Free Report) logged a loss of $16 million or 15 cents per share in the second quarter of 2018, wider than a loss of $4 million or 3 cents per share it recorded a year ago. The reported loss per share was, however, narrower than the Zacks Consensus Estimate of a loss of 24 cents.
CVR Partners raked in net sales of $93 million, down around 5% year over year.
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 174,000 tons of ammonia in the second quarter (down from 215,000 tons produced a year ago), of which, 66,000 net tons were available for sale while the rest was upgraded to other fertilizers including 241,000 tons of urea ammonium nitrate ("UAN").
Production in the reported quarter were unfavorably affected by planned and unplanned downtime at the company’s Coffeyville and East Dubuque fertilizer plants.
In the reported quarter, consolidated average realized gate prices for UAN and ammonia were $191 and $348 per ton, respectively, up around 10% and 5% year over year, respectively.
Financials
CVR Partners ended the quarter with cash and cash equivalents of $28.3 million, down around 45% year over year. Total debt slightly increased to $627.4 million in the quarter from $624.5 million a year ago.
Outlook
CVR Partners saw strong demand for nitrogen fertilizer as the weather improved and the 2018 spring planting season ended well. The company believes that nitrogen fertilizer market in the United States has finally adjusted to the new production capacity that came online during the last three years.
Price Performance
Shares of CVR Partners have lost 3.1% over a year, underperforming the industry’s 26.7% rise.
Zacks Rank & Stocks to Consider
CVR Partners currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include KMG Chemicals, Inc. , Methanex Corporation (MEOH - Free Report) and BHP Billiton Limited (BHP - Free Report) each carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
KMG Chemicals has an expected long-term earnings growth rate of 28.5%. Its shares have gained roughly 41% over a year.
Methanex has an expected long-term earnings growth rate of 15%. The company’s shares have rallied around 52% in a year.
BHP Billiton has an expected long-term earnings growth rate of 5.3%. Its shares have shot up roughly 24% over a year.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>