Back to top

Image: Bigstock

Nutrien (NTR) to Report Q2 Earnings: What's in the Offing?

Read MoreHide Full Article

Nutrien Ltd. (NTR - Free Report) is set to release second-quarter 2021 results on Aug 9, after the closing bell. The company’s second-quarter results are likely to reflect the benefits of strong demand and prices for phosphate and potash.

The fertilizer maker delivered an earnings surprise of 129.2%, on average, over the trailing four quarters. It posted an earnings surprise of 222.2% in the last reported quarter.

The company’s shares have gained 61.6% in the past year compared with the industry’s 56% rise.

 

Zacks Investment Research
Image Source: Zacks Investment Research



Let’s see how things are shaping up for this announcement.

Zacks Model

Our proven model predicts an earnings beat for Nutrien this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat.

Earnings ESP: Earnings ESP for Nutrien is +1.44%. The Zacks Consensus Estimate for the second quarter is currently pegged at $2.09. 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 #1.

What do the Estimates Indicate?

The Zacks Consensus Estimate for Nutrien’s second-quarter consolidated sales is currently pegged at $9,989 million, which calls for a rise of 18.7% from the year-ago quarter’s tally.

The Zacks Consensus Estimate for net sales in the Phosphates segment is currently pegged at $421 million, which calls for a year-over-year rise of 52%.

Moreover, the consensus mark for net sales in the Potash segment is currently pegged at $787 million, which calls for a year-over-year rise of 33.8%.

The consensus mark for net sales in the Nitrogen segment is currently pegged at $1,158 million, which suggests a year-over-year rise of 35.8%.

A Few Factors to Watch

The company is likely to have benefited from solid demand and higher prices for fertilizers, especially potash, in the second quarter. It is expected to have gained from strong potash sales volumes on the back of solid domestic and overseas demand.

Global phosphate markets remain robust on solid demand and pricing dynamics. Tight availability, firm demand and higher input costs are driving up phosphate prices globally. Potash prices have also strengthened on the back of robust global demand, aided by strong grower economics, higher crop prices and low global inventory levels.

Demand for nitrogen fertilizer also remains healthy in major markets. Global nitrogen requirement is being driven by demand in North America, India and Brazil. The strength in global agriculture markets is also likely to have aided nitrogen prices in the second quarter.

Nutrien is also expected to have gained from contributions of acquisitions and cost efficiency in the second quarter.

 

Nutrien Ltd. Price and EPS Surprise

 

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 they too have the right combination of elements to post an earnings beat this quarter:

Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) scheduled to release earnings on Aug 18, has an Earnings ESP of +21.88% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

GrowGeneration Corp. (GRWG - Free Report) , scheduled to release earnings on Aug 12, has an Earnings ESP of +3.45% and carries a Zacks Rank #2.

Hydrofarm Holdings Group, Inc. (HYFM - Free Report) , scheduled to release earnings on Aug 12, has an Earnings ESP of +32.98% and sports a Zacks Rank #3.