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Nutrien's (NTR) Q1 Earnings Surpass Estimates, Sales Lag
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Nutrien Ltd. (NTR - Free Report) recorded profits of $1,385 million or $2.49 per share in first-quarter 2022, up from a profit of $133 million or 22 cents in the year-ago quarter.
Barring one-time items, adjusted earnings per share (EPS) were $2.70. The bottom line topped the Zacks Consensus Estimate of $2.59.
Sales climbed around 64% year over year to $7,657 million in the quarter. The figure, however, missed the Zacks Consensus Estimate of $7,766.8 million. The company benefited from higher selling prices and strong Retail performance in the quarter. This was offset by a reduction in fertilizer sales volumes mainly due to a delayed start to the planting season in North America.
Sales in the Nutrien Ag Solutions (Retail) segment rose 30% year over year to $3,861 million in the quarter. Sales of crop nutrients increased in the quarter on higher prices. Sales of crop protection products also increased owing to higher selling prices, strong demand and favorable application conditions in Australia.
Potash division’s sales surged 203% year over year to $1,850 million driven by higher net realized selling prices. Sales volumes in the segment fell due to the delayed planting in North America. Selling prices increased on the back of strong demand and tight supply.
Sales in the Nitrogen segment were $1,462 million, up around 155% year over year. The upside can be attributed to higher net realized selling prices, which offset lower volumes. Sales volume fell due to plant outages impacting ammonia and urea production, and the delayed planting in North America.
Sales in the Phosphate segment were $563 million, up 64% year over year on the back of higher net realized selling price. Prices rose in sync with an increase in global benchmark prices. Volumes declined due to the delayed planting.
Financials
At the end of the quarter, Nutrien had cash and cash equivalents of $577 million, down around 19% year over year. Long-term debt was $7,519 million, down roughly 25% year over year.
Cash used in operating activities was $62 million for the reported quarter.
The company repurchased around 9 million shares year-to-date as of Apr 29, 2022, for a total of roughly $740 million.
Guidance
Nutrien raised its full-year 2022 adjusted EBITDA guidance and full-year adjusted net earnings per share guidance factoring in the expectation of higher realized selling prices, higher potash sales volumes and higher Retail crop nutrients and crop protection products gross margins.
The company now expects adjusted EBITDA of $14.5-$16.5 billion (up from $10-$11.2 billion) for full-year 2022. Adjusted EPS has been forecast in the band of $16.20-$18.70 (up from $10.20-$11.80). Nutrien also sees sustaining capital expenditure of $1.2-$1.3 billion in 2022.
The company also now sees potash sales volumes of between 14.5 million and 15.1 million tons in 2022. Nitrogen sales volumes are now projected in the band of 10.7-11.1 million tons for the year.
Price Performance
Nutrien’s shares have gained 81% in the past year compared with 52% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
Nutrien currently sports a Zacks Rank #1 (Strong Buy).
Better-ranked stocks worth considering in the basic materials space include Steel Dynamics, Inc. (STLD - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Commercial Metals Company (CMC - Free Report) .
Steel Dynamics, sporting a Zacks Rank #1, has an expected earnings growth rate of 18.5% for the current year. The Zacks Consensus Estimate for STLD's current-year earnings has been revised 32.5% upward over the last 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Steel Dynamics beat the Zacks Consensus Estimate for earnings in each of the last four quarters, the average being roughly 2.5%. STLD has rallied around 45% in a year.
Commercial Metals, carrying a Zacks Rank #1, has a projected earnings growth rate of 78.2% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 31.9% upward over the past 60 days.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 16%, on average. CMC has gained around 31% in a year.
AdvanSix, carrying a Zacks Rank #1, has an expected earnings growth rate of 63.4% for the current year. ASIX's consensus estimate for current-year earnings has been revised 31.9% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 23.6%, on average. ASIX has rallied around 39% in a year.
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Nutrien's (NTR) Q1 Earnings Surpass Estimates, Sales Lag
Nutrien Ltd. (NTR - Free Report) recorded profits of $1,385 million or $2.49 per share in first-quarter 2022, up from a profit of $133 million or 22 cents in the year-ago quarter.
Barring one-time items, adjusted earnings per share (EPS) were $2.70. The bottom line topped the Zacks Consensus Estimate of $2.59.
Sales climbed around 64% year over year to $7,657 million in the quarter. The figure, however, missed the Zacks Consensus Estimate of $7,766.8 million. The company benefited from higher selling prices and strong Retail performance in the quarter. This was offset by a reduction in fertilizer sales volumes mainly due to a delayed start to the planting season in North America.
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 (Retail) segment rose 30% year over year to $3,861 million in the quarter. Sales of crop nutrients increased in the quarter on higher prices. Sales of crop protection products also increased owing to higher selling prices, strong demand and favorable application conditions in Australia.
Potash division’s sales surged 203% year over year to $1,850 million driven by higher net realized selling prices. Sales volumes in the segment fell due to the delayed planting in North America. Selling prices increased on the back of strong demand and tight supply.
Sales in the Nitrogen segment were $1,462 million, up around 155% year over year. The upside can be attributed to higher net realized selling prices, which offset lower volumes. Sales volume fell due to plant outages impacting ammonia and urea production, and the delayed planting in North America.
Sales in the Phosphate segment were $563 million, up 64% year over year on the back of higher net realized selling price. Prices rose in sync with an increase in global benchmark prices. Volumes declined due to the delayed planting.
Financials
At the end of the quarter, Nutrien had cash and cash equivalents of $577 million, down around 19% year over year. Long-term debt was $7,519 million, down roughly 25% year over year.
Cash used in operating activities was $62 million for the reported quarter.
The company repurchased around 9 million shares year-to-date as of Apr 29, 2022, for a total of roughly $740 million.
Guidance
Nutrien raised its full-year 2022 adjusted EBITDA guidance and full-year adjusted net earnings per share guidance factoring in the expectation of higher realized selling prices, higher potash sales volumes and higher Retail crop nutrients and crop protection products gross margins.
The company now expects adjusted EBITDA of $14.5-$16.5 billion (up from $10-$11.2 billion) for full-year 2022. Adjusted EPS has been forecast in the band of $16.20-$18.70 (up from $10.20-$11.80). Nutrien also sees sustaining capital expenditure of $1.2-$1.3 billion in 2022.
The company also now sees potash sales volumes of between 14.5 million and 15.1 million tons in 2022. Nitrogen sales volumes are now projected in the band of 10.7-11.1 million tons for the year.
Price Performance
Nutrien’s shares have gained 81% in the past year compared with 52% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
Nutrien currently sports a Zacks Rank #1 (Strong Buy).
Better-ranked stocks worth considering in the basic materials space include Steel Dynamics, Inc. (STLD - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Commercial Metals Company (CMC - Free Report) .
Steel Dynamics, sporting a Zacks Rank #1, has an expected earnings growth rate of 18.5% for the current year. The Zacks Consensus Estimate for STLD's current-year earnings has been revised 32.5% upward over the last 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Steel Dynamics beat the Zacks Consensus Estimate for earnings in each of the last four quarters, the average being roughly 2.5%. STLD has rallied around 45% in a year.
Commercial Metals, carrying a Zacks Rank #1, has a projected earnings growth rate of 78.2% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 31.9% upward over the past 60 days.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 16%, on average. CMC has gained around 31% in a year.
AdvanSix, carrying a Zacks Rank #1, has an expected earnings growth rate of 63.4% for the current year. ASIX's consensus estimate for current-year earnings has been revised 31.9% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 23.6%, on average. ASIX has rallied around 39% in a year.