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Nutrien (NTR) Up 27.3% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Nutrien (NTR - Free Report) . Shares have added about 27.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Nutrien due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Nutrien's Q4 Earnings and Revenues Beat Estimates
Nutrien recorded profits of $1,207 million or $2.11 per share in fourth-quarter 2021, up from a profit of $316 million or 55 cents in the year-ago quarter.
Barring one-time items, adjusted earnings per share (EPS) were $2.47. The bottom line topped the Zacks Consensus Estimate of $2.30.
Sales climbed around 79% year over year to $7,267 million in the quarter. The figure beat the Zacks Consensus Estimate of $6,428.1 million. The company benefited from higher sales across all the segments, aided by higher selling prices.
Segment Highlights
Sales in the Nutrien Ag Solutions segment rose 48% year over year to $3,878 million in the quarter. Sales of crop nutrients increased in the quarter on record sales volumes and higher prices. Sales of crop protection products also increased owing to higher selling prices, market share growth and higher proprietary product sales.
Potash division’s sales surged 216% year over year to $1,420 million driven by higher sales volumes and higher net realized selling prices. Sales volumes in the segment were supported by the company’s actions to boost production to meet strong global demand. Selling prices increased on the back of strong demand and tight supply.
Sales in the Nitrogen segment were $1,456 million, up around 162% year over year. The upside can be attributed to higher net realized selling prices, which offset lower volumes. Sales volume fell due to plant turnaround activities, production outages and lower inventory volumes.
Sales in the Phosphate segment were $532 million, up 90% year over year on the back of higher net realized selling prices and sales volumes. Prices were driven by strong global phosphate demand, tight inventories and increased raw material costs.
2021 Results
Earnings for full-year 2021 were $5.52 per share compared with 81 cents per share a year ago. Revenues rose 33% year over year to $27,712 million for the full year.
Financials
At the end of 2021, Nutrien had cash and cash equivalents of $499 million, down around 66% year over year. Long-term debt was $7,521 million, down roughly 25% year over year.
The company generated $4.3 billion in free cash flow in 2021, up 135% year over year.
Guidance
Nutrien said that the outlook for global agriculture and crop input markets remains strong and it is well positioned to deliver significant growth in earnings and free cash flow this year.
The company expects adjusted EBITDA of $10-$11.2 billion for full-year 2022. Adjusted EPS has been forecast in the band of $10.20-$11.80. Nutrien also sees sustaining capital expenditure of $1.2-$1.3 billion in 2022.
The company also sees record potash sales volumes of between 13.7 million and 14.3 million tons in 2022. Nitrogen sales volumes are projected in the band of 10.8-11.3 million tons for the year.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
Currently, Nutrien has a strong Growth Score of A, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Nutrien has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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Nutrien (NTR) Up 27.3% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Nutrien (NTR - Free Report) . Shares have added about 27.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Nutrien due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Nutrien's Q4 Earnings and Revenues Beat Estimates
Nutrien recorded profits of $1,207 million or $2.11 per share in fourth-quarter 2021, up from a profit of $316 million or 55 cents in the year-ago quarter.
Barring one-time items, adjusted earnings per share (EPS) were $2.47. The bottom line topped the Zacks Consensus Estimate of $2.30.
Sales climbed around 79% year over year to $7,267 million in the quarter. The figure beat the Zacks Consensus Estimate of $6,428.1 million. The company benefited from higher sales across all the segments, aided by higher selling prices.
Segment Highlights
Sales in the Nutrien Ag Solutions segment rose 48% year over year to $3,878 million in the quarter. Sales of crop nutrients increased in the quarter on record sales volumes and higher prices. Sales of crop protection products also increased owing to higher selling prices, market share growth and higher proprietary product sales.
Potash division’s sales surged 216% year over year to $1,420 million driven by higher sales volumes and higher net realized selling prices. Sales volumes in the segment were supported by the company’s actions to boost production to meet strong global demand. Selling prices increased on the back of strong demand and tight supply.
Sales in the Nitrogen segment were $1,456 million, up around 162% year over year. The upside can be attributed to higher net realized selling prices, which offset lower volumes. Sales volume fell due to plant turnaround activities, production outages and lower inventory volumes.
Sales in the Phosphate segment were $532 million, up 90% year over year on the back of higher net realized selling prices and sales volumes. Prices were driven by strong global phosphate demand, tight inventories and increased raw material costs.
2021 Results
Earnings for full-year 2021 were $5.52 per share compared with 81 cents per share a year ago. Revenues rose 33% year over year to $27,712 million for the full year.
Financials
At the end of 2021, Nutrien had cash and cash equivalents of $499 million, down around 66% year over year. Long-term debt was $7,521 million, down roughly 25% year over year.
The company generated $4.3 billion in free cash flow in 2021, up 135% year over year.
Guidance
Nutrien said that the outlook for global agriculture and crop input markets remains strong and it is well positioned to deliver significant growth in earnings and free cash flow this year.
The company expects adjusted EBITDA of $10-$11.2 billion for full-year 2022. Adjusted EPS has been forecast in the band of $10.20-$11.80. Nutrien also sees sustaining capital expenditure of $1.2-$1.3 billion in 2022.
The company also sees record potash sales volumes of between 13.7 million and 14.3 million tons in 2022. Nitrogen sales volumes are projected in the band of 10.8-11.3 million tons for the year.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
Currently, Nutrien has a strong Growth Score of A, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Nutrien has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.