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Nutrien's (NTR) Earnings and Sales Miss Estimates in Q2
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Nutrien Ltd. (NTR - Free Report) logged profits of $1.1 billion or $1.94 per share in second-quarter 2021, up from a profit of $765 million or $1.34 in the year-ago quarter.
Barring one-time items, adjusted earnings per share were $2.08 that missed the Zacks Consensus Estimate of $2.09.
Sales rose roughly 16% year over year to $9,763 million in the quarter. However, the figure lagged the Zacks Consensus Estimate of $9,989 million. The company benefited from earnings growth in the Nutrien Ag Solutions segment, higher net realized selling prices and higher potash sales volumes.
Sales in the Nutrien Ag Solutions segment rose roughly 11% year over year to $7,537 million in the quarter. Sales of crop nutrients increased significantly in the quarter on higher prices. Sales of crop protection products also increased on the back of market growth and favorable application conditions.
Potash division’s sales climbed around 39% year over year to $817 million driven by strong volumes and higher net realized selling prices. Sales volumes in the segment were driven by strong demand in North America and offshore markets while prices increased on strong demand and tight supply.
Sales in the Nitrogen segment were $982 million, up around 41% year over year, driven by higher net realized selling prices which more than offset a decline in sales volumes, reduced equity earnings and higher natural gas costs. Prices of nitrogen rose on the strength in global agriculture markets and a recovery in industrial nitrogen demand.
Sales in the Phosphate segment were $351 million, up around 40% year over year on the back of higher net realized selling prices. Sales volumes fell partly due to the timing of turnaround activity.
Financials
At the end of the quarter, Nutrien had cash and cash equivalents of $1,794 million, up around 27% year over year. Long-term debt fell modestly year over year to $10,029 million.
The company generated $1.9 billion in free cash flow in the first half of 2021.
Outlook
The company raised its adjusted net earnings per share and adjusted EBITDA guidance to $4.60-$5.10 (from $2.55-$3.25) and $6-$6.4 billion (from $4.4-$4.9 billion), respectively, for full-year 2021. The revision reflects higher expected results across its business and the benefits of increasing its potash sales guidance for 2021 by one million tons.
Price Performance
Shares of Nutrien have gained 66.2% in the past year compared with 49.3% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Nutrien currently carries a Zacks Rank #1 (Strong Buy).
Nucor has a projected earnings growth rate of 455.7% for the current year. The company’s shares have surged around 160% in a year.
ArcelorMittal has an expected earnings growth rate of 1,731.2% for the current year. The company’s shares have shot up around 192% in the past year.
LyondellBasell has an expected earnings growth rate of around 254.6% for the current year. The company’s shares have gained roughly 46% in the past year.
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Nutrien's (NTR) Earnings and Sales Miss Estimates in Q2
Nutrien Ltd. (NTR - Free Report) logged profits of $1.1 billion or $1.94 per share in second-quarter 2021, up from a profit of $765 million or $1.34 in the year-ago quarter.
Barring one-time items, adjusted earnings per share were $2.08 that missed the Zacks Consensus Estimate of $2.09.
Sales rose roughly 16% year over year to $9,763 million in the quarter. However, the figure lagged the Zacks Consensus Estimate of $9,989 million. The company benefited from earnings growth in the Nutrien Ag Solutions segment, higher net realized selling prices and higher potash sales volumes.
Nutrien Ltd. Price, Consensus and EPS Surprise
Nutrien Ltd. price-consensus-eps-surprise-chart | Nutrien Ltd. Quote
Segment Highlights
Sales in the Nutrien Ag Solutions segment rose roughly 11% year over year to $7,537 million in the quarter. Sales of crop nutrients increased significantly in the quarter on higher prices. Sales of crop protection products also increased on the back of market growth and favorable application conditions.
Potash division’s sales climbed around 39% year over year to $817 million driven by strong volumes and higher net realized selling prices. Sales volumes in the segment were driven by strong demand in North America and offshore markets while prices increased on strong demand and tight supply.
Sales in the Nitrogen segment were $982 million, up around 41% year over year, driven by higher net realized selling prices which more than offset a decline in sales volumes, reduced equity earnings and higher natural gas costs. Prices of nitrogen rose on the strength in global agriculture markets and a recovery in industrial nitrogen demand.
Sales in the Phosphate segment were $351 million, up around 40% year over year on the back of higher net realized selling prices. Sales volumes fell partly due to the timing of turnaround activity.
Financials
At the end of the quarter, Nutrien had cash and cash equivalents of $1,794 million, up around 27% year over year. Long-term debt fell modestly year over year to $10,029 million.
The company generated $1.9 billion in free cash flow in the first half of 2021.
Outlook
The company raised its adjusted net earnings per share and adjusted EBITDA guidance to $4.60-$5.10 (from $2.55-$3.25) and $6-$6.4 billion (from $4.4-$4.9 billion), respectively, for full-year 2021. The revision reflects higher expected results across its business and the benefits of increasing its potash sales guidance for 2021 by one million tons.
Price Performance
Shares of Nutrien have gained 66.2% in the past year compared with 49.3% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Nutrien currently carries a Zacks Rank #1 (Strong Buy).
Other top-ranked stocks worth considering in the basic materials space include Nucor Corporation (NUE - Free Report) , ArcelorMittal (MT - Free Report) and LyondellBasell Industries N.V. (LYB - Free Report) , each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nucor has a projected earnings growth rate of 455.7% for the current year. The company’s shares have surged around 160% in a year.
ArcelorMittal has an expected earnings growth rate of 1,731.2% for the current year. The company’s shares have shot up around 192% in the past year.
LyondellBasell has an expected earnings growth rate of around 254.6% for the current year. The company’s shares have gained roughly 46% in the past year.