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Nutrien (NTR) to Increase Fertilizer Production & Return Capital
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Nutrien Ltd. (NTR - Free Report) announced that it plans to increase fertilizer production capability in the wake of the structural changes in global energy, agriculture and fertilizer markets.
Nutrien stated it is boosting its annual potash manufacturing capacity to 18 million tons by 2025 due to the uncertainty of supply from Eastern Europe. This marks a hike of more than 5 million tons or 40% from its production levels in 2020. The additional production capability is anticipated to be added at a similar annual pace to the additions over the past two years.
It is also advancing the earlier-announced brownfield expansion projects, which are expected to add roughly 500,000 tons of capacity by the end of 2025 and further boost its plants’ energy efficiency and product mix. The company examines the potential for more low-cost brownfield expansion and emissions reduction projects, with a final investment decision expected over the next 12 months.
Nutrien also intends to buyback an additional $2 billion of shares, for roughly $4 billion of repurchases in 2022, under its existing normal course issuer bid. This is expected to raise the company’s total return of capital to shareholders through dividends and share repurchases to around $5 billion in 2022.
Shares of Nutrien have rallied 33.5% in the past year compared with a 43.8% surge of the industry.
Image Source: Zacks Investment Research
In its last earnings call, Nutrien stated that it 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.
Nutrien currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the basic materials space are Allegheny Technologies Inc. (ATI - Free Report) , Cabot Corporation (CBT - Free Report) and The Chemours Company (CC - Free Report) .
Allegheny has a projected earnings growth rate of 1,030.8% for the current year. The Zacks Consensus Estimate for ATI's current-year earnings has been revised 40% upward in the past 60 days.
Allegheny’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 128.9%, on average. ATI has gained around 2.2% in a year and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 21.5% for the current year. The Zacks Consensus Estimate for CBT's earnings for the current year has been revised 5.2% upward in the past 60 days.
Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 12% over a year.
Chemours, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 30.5% for the current year. The Zacks Consensus Estimate for CC's earnings for the current year has been revised 15.2% upward in the past 60 days.
Chemours’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 28.7%. CC has gained around 4.5% over a year.
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Nutrien (NTR) to Increase Fertilizer Production & Return Capital
Nutrien Ltd. (NTR - Free Report) announced that it plans to increase fertilizer production capability in the wake of the structural changes in global energy, agriculture and fertilizer markets.
Nutrien stated it is boosting its annual potash manufacturing capacity to 18 million tons by 2025 due to the uncertainty of supply from Eastern Europe. This marks a hike of more than 5 million tons or 40% from its production levels in 2020. The additional production capability is anticipated to be added at a similar annual pace to the additions over the past two years.
It is also advancing the earlier-announced brownfield expansion projects, which are expected to add roughly 500,000 tons of capacity by the end of 2025 and further boost its plants’ energy efficiency and product mix. The company examines the potential for more low-cost brownfield expansion and emissions reduction projects, with a final investment decision expected over the next 12 months.
Nutrien also intends to buyback an additional $2 billion of shares, for roughly $4 billion of repurchases in 2022, under its existing normal course issuer bid. This is expected to raise the company’s total return of capital to shareholders through dividends and share repurchases to around $5 billion in 2022.
Shares of Nutrien have rallied 33.5% in the past year compared with a 43.8% surge of the industry.
Image Source: Zacks Investment Research
In its last earnings call, Nutrien stated that it 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.
Nutrien Ltd. Price and Consensus
Nutrien Ltd. price-consensus-chart | Nutrien Ltd. Quote
Zacks Rank & Other Key Picks
Nutrien currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the basic materials space are Allegheny Technologies Inc. (ATI - Free Report) , Cabot Corporation (CBT - Free Report) and The Chemours Company (CC - Free Report) .
Allegheny has a projected earnings growth rate of 1,030.8% for the current year. The Zacks Consensus Estimate for ATI's current-year earnings has been revised 40% upward in the past 60 days.
Allegheny’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 128.9%, on average. ATI has gained around 2.2% in a year and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 21.5% for the current year. The Zacks Consensus Estimate for CBT's earnings for the current year has been revised 5.2% upward in the past 60 days.
Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 12% over a year.
Chemours, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 30.5% for the current year. The Zacks Consensus Estimate for CC's earnings for the current year has been revised 15.2% upward in the past 60 days.
Chemours’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 28.7%. CC has gained around 4.5% over a year.