A couple of fertilizer companies are scheduled to come up with their quarterly results on Nov 3. The fertilizer industry falls under the broader Basic Materials sector. Based on the earnings scorecard as of Nov 1, 75% of the sector participants on the S&P 500 index have already reported their quarterly numbers. Earnings for these companies have increased 7.5% from the same period last year while revenues are down 2.2%, per the latest Earnings Outlook.
The fertilizer industry is in a rut and still hamstrung by a slew of headwinds that continue to weigh on the performance of the companies in the space. Fertilizer makers remain exposed to a difficult pricing environment for the nutrients they sale. Potash prices remain under pressure due to elevated supply. Moreover, depressed global energy prices and higher supply have also contributed to a softer nitrogen pricing environment.
Global capacity expansion continues to exert pressure on urea and other nitrogen fertilizer prices. Elevated supply in the global nitrogen market is hurting prices, causing farmers to delay their buying activities. As such, margins of fertilizer producers remain thwarted by a weak nutrient pricing environment.
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.
Let's see what's in store for these two fertilizer companies that are set to report their quarterly numbers on Nov 3.
Agrium Inc. will report third-quarter results before the bell. It has an Earnings ESP of -8.33% as the Most Accurate estimate stands 11 cents while the Zacks Consensus Estimate is pegged at 12 cents. The stock carries a favorable Zacks Rank #3 (Hold), but its negative ESP makes surprise prediction difficult. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Agrium beat the Zacks Consensus Estimate in all the trailing four quarters with an average positive surprise of 39.71%.
The Scotts Miracle-Gro Company (SMG - Free Report) will report fiscal fourth-quarter results before the bell. The company is expected to come up with a positive earnings surprise as it has an Earnings ESP of +15.39% and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
The company surpassed the Zacks Consensus Estimate in the trailing four quarters, with an average beat of 12.55%.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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A couple of fertilizer companies are scheduled to come up with their quarterly results on Nov 3. The fertilizer industry falls under the broader Basic Materials sector. Based on the earnings scorecard as of Nov 1, 75% of the sector participants on the S&P 500 index have already reported their quarterly numbers. Earnings for these companies have increased 7.5% from the same period last year while revenues are down 2.2%, per the latest Earnings Outlook.
The fertilizer industry is in a rut and still hamstrung by a slew of headwinds that continue to weigh on the performance of the companies in the space. Fertilizer makers remain exposed to a difficult pricing environment for the nutrients they sale. Potash prices remain under pressure due to elevated supply. Moreover, depressed global energy prices and higher supply have also contributed to a softer nitrogen pricing environment.
Global capacity expansion continues to exert pressure on urea and other nitrogen fertilizer prices. Elevated supply in the global nitrogen market is hurting prices, causing farmers to delay their buying activities. As such, margins of fertilizer producers remain thwarted by a weak nutrient pricing environment.
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.
Let's see what's in store for these two fertilizer companies that are set to report their quarterly numbers on Nov 3.
Agrium Inc. will report third-quarter results before the bell. It has an Earnings ESP of -8.33% as the Most Accurate estimate stands 11 cents while the Zacks Consensus Estimate is pegged at 12 cents. The stock carries a favorable Zacks Rank #3 (Hold), but its negative ESP makes surprise prediction difficult. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Agrium beat the Zacks Consensus Estimate in all the trailing four quarters with an average positive surprise of 39.71%.
The Scotts Miracle-Gro Company (SMG - Free Report) will report fiscal fourth-quarter results before the bell. The company is expected to come up with a positive earnings surprise as it has an Earnings ESP of +15.39% and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
The company surpassed the Zacks Consensus Estimate in the trailing four quarters, with an average beat of 12.55%.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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