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In the last reported quarter, Andersons’ earnings and sales not only beat the Zacks Consensus Estimate but also improved year over year. The company has surpassed earnings estimates in three of the trailing four quarters and missed once, the average surprise being 293%.
The Zacks Consensus Estimate for the fourth-quarter revenues is pegged at $2.63 billion, suggesting growth of 3.3% from the year-ago quarter. The consensus mark for quarterly earnings currently stands at 58 cents per share, suggesting a decline of 1.7% from the prior-year reported number. The earnings estimate has remained unchanged over the past 30 days.
Factors to Note
Andersons completed the strategic sale of Rail leasing assets in the third quarter and used proceeds to reduce debt. The company’s operations now include three reportable business segments that are distinguished primarily on the basis of products and services offered and the structure of management.
The Trade business includes commodity merchandising and the operation of terminal grain elevator facilities. The segment is likely to have benefited from continued merchandising opportunities throughout the fourth quarter. A good harvest, increased commodity prices and strong elevation margins might have driven the segment’s performance in the quarter to be reported. The Ethanol business produces ethanol and co-products through its five co-owned and fully consolidated ethanol production facilities as well as purchases and sells ethanol and ethanol co-products. The segment is expected to have benefited from high ethanol demand and prices in the fourth quarter of 2022.
The Plant Nutrient business manufactures and distributes agricultural inputs, primarily fertilizer, to dealers and farmers, along with turf care and corncob-based products. High demand and strong margins in the agricultural product lines, courtesy of rising fertilizer prices and farmer income, are likely to have aided the segment’s performance in the fourth quarter. However, lower margins in manufactured products due to higher input costs and a tight labor market might have partly offset the same.
What the Zacks Model Unveils
Our proven model does not predict an earnings beat for Andersons this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, this is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Andersons’ shares have gained 43.7% over the past year, compared with the industry's rally of 9%.
Stocks Poised to Beat Estimates
Here are some Basic Materials stocks, which you may consider as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases.
Nutrien (NTR - Free Report) has an Earnings ESP of +2.61% and a Zacks Rank #1. The Zacks Consensus Estimate for the company’s earnings for the fourth quarter of 2021 indicates year-over-year growth of 858%.
Shares of Nutrien have appreciated 36.1% over the past year. NTR’s earnings beat the consensus mark in three of the trailing four quarters and missed once, the average surprise being 73.5%.
Huntsman Corporation (HUN - Free Report) has an Earnings ESP of +0.09% and a Zacks Rank #2. The Zacks Consensus Estimate for the company’s earnings for the fourth quarter of 2021 suggests year-over-year growth of 72.5%.
Shares of Huntsman have gained 31.7% over the past year. HUN’s earnings topped the consensus mark in each of the trailing four quarters, the average surprise being 12.8%.
CF Industries (CF - Free Report) has an Earnings ESP of +7.34% and a Zacks Rank #3. The Zacks Consensus Estimate for the company’s earnings for the fourth quarter of 2021 indicates year-over-year growth of 752%.
Shares of CF Industries have gained 68.9% over the past year. CF’s earnings beat estimates in two of the trailing four quarters and missed twice, the average surprise being 97.8%.
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Andersons (ANDE) to Report Q4 Earnings: What's in Store?
The Andersons (ANDE - Free Report) is slated to report fourth-quarter 2021 results on Feb 15 after the closing bell.
Q3 Performance
In the last reported quarter, Andersons’ earnings and sales not only beat the Zacks Consensus Estimate but also improved year over year. The company has surpassed earnings estimates in three of the trailing four quarters and missed once, the average surprise being 293%.
The Andersons, Inc. Price and EPS Surprise
The Andersons, Inc. price-eps-surprise | The Andersons, Inc. Quote
Q4 Estimates
The Zacks Consensus Estimate for the fourth-quarter revenues is pegged at $2.63 billion, suggesting growth of 3.3% from the year-ago quarter. The consensus mark for quarterly earnings currently stands at 58 cents per share, suggesting a decline of 1.7% from the prior-year reported number. The earnings estimate has remained unchanged over the past 30 days.
Factors to Note
Andersons completed the strategic sale of Rail leasing assets in the third quarter and used proceeds to reduce debt. The company’s operations now include three reportable business segments that are distinguished primarily on the basis of products and services offered and the structure of management.
The Trade business includes commodity merchandising and the operation of terminal grain elevator facilities. The segment is likely to have benefited from continued merchandising opportunities throughout the fourth quarter. A good harvest, increased commodity prices and strong elevation margins might have driven the segment’s performance in the quarter to be reported.
The Ethanol business produces ethanol and co-products through its five co-owned and fully consolidated ethanol production facilities as well as purchases and sells ethanol and ethanol co-products. The segment is expected to have benefited from high ethanol demand and prices in the fourth quarter of 2022.
The Plant Nutrient business manufactures and distributes agricultural inputs, primarily fertilizer, to dealers and farmers, along with turf care and corncob-based products. High demand and strong margins in the agricultural product lines, courtesy of rising fertilizer prices and farmer income, are likely to have aided the segment’s performance in the fourth quarter. However, lower margins in manufactured products due to higher input costs and a tight labor market might have partly offset the same.
What the Zacks Model Unveils
Our proven model does not predict an earnings beat for Andersons this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, this is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for ANDE is 0.00%.
Zacks Rank: The company currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Price Performance
Andersons’ shares have gained 43.7% over the past year, compared with the industry's rally of 9%.
Stocks Poised to Beat Estimates
Here are some Basic Materials stocks, which you may consider as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases.
Nutrien (NTR - Free Report) has an Earnings ESP of +2.61% and a Zacks Rank #1. The Zacks Consensus Estimate for the company’s earnings for the fourth quarter of 2021 indicates year-over-year growth of 858%.
Shares of Nutrien have appreciated 36.1% over the past year. NTR’s earnings beat the consensus mark in three of the trailing four quarters and missed once, the average surprise being 73.5%.
Huntsman Corporation (HUN - Free Report) has an Earnings ESP of +0.09% and a Zacks Rank #2. The Zacks Consensus Estimate for the company’s earnings for the fourth quarter of 2021 suggests year-over-year growth of 72.5%.
Shares of Huntsman have gained 31.7% over the past year. HUN’s earnings topped the consensus mark in each of the trailing four quarters, the average surprise being 12.8%.
CF Industries (CF - Free Report) has an Earnings ESP of +7.34% and a Zacks Rank #3. The Zacks Consensus Estimate for the company’s earnings for the fourth quarter of 2021 indicates year-over-year growth of 752%.
Shares of CF Industries have gained 68.9% over the past year. CF’s earnings beat estimates in two of the trailing four quarters and missed twice, the average surprise being 97.8%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.