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Nutrien (NTR) to Post Q3 Earnings: What's in the Cards?

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Nutrien Ltd. (NTR - Free Report) is set to release third-quarter 2021 results on Nov 1, after the closing bell.

The fertilizer maker delivered an earnings surprise of 127.6%, on average, over the trailing four quarters. It posted a negative earnings surprise of 0.5% in the last reported quarter. The company’s third-quarter results are likely to reflect the benefits of strong demand and higher prices for fertilizers.

The company’s shares have gained 73.8% in the past year compared with the industry’s 70.6% rise.

 

Zacks Investment ResearchImage Source: Zacks Investment Research



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

What do the Estimates Indicate?

The Zacks Consensus Estimate for Nutrien’s third-quarter consolidated sales is currently pegged at $5,767 million, which calls for a rise of 37.2% from the year-ago quarter’s tally.

The Zacks Consensus Estimate for net sales in the Phosphates segment is currently pegged at $457 million, which calls for a year-over-year rise of 56.5%.

Moreover, the consensus mark for net sales in the Potash segment is currently pegged at $1,138 million, which calls for a year-over-year rise of 92.6%.

The consensus mark for net sales in the Nitrogen segment is currently pegged at $1,023 million, which suggests a year-over-year rise of 89.4%.

A Few Factors to Watch

The company is likely to have benefited from solid demand and higher prices for fertilizers, especially potash, in the third quarter, supported by the strength in global agriculture markets. It is expected to have gained from strong potash sales volumes on the back of solid domestic and overseas demand. Nutrien is also likely to have gained from acquisitions, cost efficiency, and increased adoption of its digital platform.

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

Demand for nitrogen fertilizer also remains healthy in major markets. Global nitrogen requirement is being driven by demand in North America, India and Brazil. Lower global supply availability stemming from reduced operating rates and a spike in energy prices are also likely to have boosted nitrogen prices in the quarter to be reported. Higher prices are expected to have driven the company’s sales and margins in the third quarter.

 

Nutrien Ltd. Price and EPS Surprise

 

Nutrien Ltd. Price and EPS Surprise

Nutrien Ltd. price-eps-surprise | Nutrien Ltd. Quote

 

Zacks Model

Our proven model does not conclusively predict an earnings beat for Nutrien this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.

Earnings ESP: Earnings ESP for Nutrien is -2.34%. The Zacks Consensus Estimate for earnings for the third quarter is currently pegged at $1.25. 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.

Stocks That Warrant a Look

Here are some companies in the basic materials space you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:

Tronox Holdings plc (TROX - Free Report) , scheduled to release earnings on Oct 27, has an Earnings ESP of +0.38% and carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Chemours Company (CC - Free Report) , scheduled to release earnings on Nov 4, has an Earnings ESP of +5.70% and carries a Zacks Rank #2.

Albemarle Corporation (ALB - Free Report) , scheduled to release earnings on Nov 3, has an Earnings ESP of +8.73% and carries a Zacks Rank #3.