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Nutrien's (NTR) Earnings and Revenues Lag Estimates in Q3
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Nutrien Ltd. (NTR - Free Report) recorded profits of $1,583 million or $2.94 per share in third-quarter 2022, up from a profit of $726 million or $1.25 in the year-ago quarter.
Barring one-time items, adjusted earnings per share (EPS) were $2.51. The bottom line missed the Zacks Consensus Estimate of $3.92.
Sales climbed around 36% year over year to $8,188 million in the quarter. The figure, however, missed the Zacks Consensus Estimate of $9,015.9 million. The company benefited from higher selling prices and strong Retail performance in the quarter.
Sales in the Nutrien Ag Solutions (Retail) segment rose 19% year over year to $3,980 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 and increased sales in proprietary products.
Potash division’s sales climbed 69% year over year to $2,004 million driven by higher net realized selling prices. Volumes in North America were impacted by a compressed spring application season. Selling prices increased on the back of tight supply.
Sales in the Nitrogen segment were $1,507 million, up around 55% year over year. The upside can be attributed to higher net realized selling prices and higher volumes. Sales volume rose on strong demand and higher offshore urea ammonium nitrate sales. The company witnessed higher natural gas costs in the quarter.
Sales in the Phosphate segment were $567 million, up 41% year over year on the back of higher net realized selling price and volumes. Prices rose in sync with an increase in global benchmark prices. Volumes rose in the quarter, aided by strong offshore fertilizer sales.
Financials
At the end of the quarter, Nutrien had cash and cash equivalents of $823 million, down around 53% year over year. Long-term debt was $7,020 million, up roughly 42% year over year.
Cash provided by operating activities was $878 million for the reported quarter.
The company repurchased around 40 million shares year-to-date as of Nov 1, 2022, for a total of roughly $3.5 billion.
Guidance
Nutrien revised its full-year 2022 adjusted EBITDA guidance and full-year adjusted net earnings per share guidance factoring in lower expected Potash earnings due to reduced potash sales volumes and realized prices, which more than offset stronger anticipated Retail earnings.
The company now expects adjusted EBITDA of $12.2-$13.2 billion (down from $14-$15.5 billion) for full-year 2022. Adjusted EPS has been forecast in the band of $13.25-$14.50 (down from $15.80-$17.80). Nutrien also sees sustaining capital expenditure of $1.3-$1.4 billion in 2022.
The company also now sees potash sales volumes of between 12.5 million and 12.9 million tons in 2022, down from the earlier view of between 14.3 million and 14.9 million tons. Nitrogen sales volumes are now projected in the band of 10.4-10.5 million tons for the year.
Price Performance
Nutrien’s shares have gained 14.9% in the past year compared with 21.6% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Nutrien currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Albemarle Corporation (ALB - Free Report) , Commercial Metals Company (CMC - Free Report) and Reliance Steel & Aluminum Co. (RS - Free Report) .
Albemarle, currently carrying a Zacks Rank #2 (Buy), has a projected earnings growth rate of 430.9% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 5.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 24.2%, on average. ALB has gained around 10% in a year.
Commercial Metals currently carries a Zacks Rank #2. The Zacks Consensus Estimate for CMC's current-year earnings has been revised 3.8% upward in the past 60 days.
Commercial Metals’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 19.7%, on average. CMC has gained around 34% in a year.
Reliance Steel, currently carrying a Zacks Rank #2, has a projected earnings growth rate of 29.7% for the current year. The Zacks Consensus Estimate for RS's current-year earnings has been revised 0.1% upward in the past 60 days.
Reliance Steel’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 13.6%, on average. RS has gained around 25% in a year.
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Nutrien's (NTR) Earnings and Revenues Lag Estimates in Q3
Nutrien Ltd. (NTR - Free Report) recorded profits of $1,583 million or $2.94 per share in third-quarter 2022, up from a profit of $726 million or $1.25 in the year-ago quarter.
Barring one-time items, adjusted earnings per share (EPS) were $2.51. The bottom line missed the Zacks Consensus Estimate of $3.92.
Sales climbed around 36% year over year to $8,188 million in the quarter. The figure, however, missed the Zacks Consensus Estimate of $9,015.9 million. The company benefited from higher selling prices and strong Retail performance in the quarter.
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 19% year over year to $3,980 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 and increased sales in proprietary products.
Potash division’s sales climbed 69% year over year to $2,004 million driven by higher net realized selling prices. Volumes in North America were impacted by a compressed spring application season. Selling prices increased on the back of tight supply.
Sales in the Nitrogen segment were $1,507 million, up around 55% year over year. The upside can be attributed to higher net realized selling prices and higher volumes. Sales volume rose on strong demand and higher offshore urea ammonium nitrate sales. The company witnessed higher natural gas costs in the quarter.
Sales in the Phosphate segment were $567 million, up 41% year over year on the back of higher net realized selling price and volumes. Prices rose in sync with an increase in global benchmark prices. Volumes rose in the quarter, aided by strong offshore fertilizer sales.
Financials
At the end of the quarter, Nutrien had cash and cash equivalents of $823 million, down around 53% year over year. Long-term debt was $7,020 million, up roughly 42% year over year.
Cash provided by operating activities was $878 million for the reported quarter.
The company repurchased around 40 million shares year-to-date as of Nov 1, 2022, for a total of roughly $3.5 billion.
Guidance
Nutrien revised its full-year 2022 adjusted EBITDA guidance and full-year adjusted net earnings per share guidance factoring in lower expected Potash earnings due to reduced potash sales volumes and realized prices, which more than offset stronger anticipated Retail earnings.
The company now expects adjusted EBITDA of $12.2-$13.2 billion (down from $14-$15.5 billion) for full-year 2022. Adjusted EPS has been forecast in the band of $13.25-$14.50 (down from $15.80-$17.80). Nutrien also sees sustaining capital expenditure of $1.3-$1.4 billion in 2022.
The company also now sees potash sales volumes of between 12.5 million and 12.9 million tons in 2022, down from the earlier view of between 14.3 million and 14.9 million tons. Nitrogen sales volumes are now projected in the band of 10.4-10.5 million tons for the year.
Price Performance
Nutrien’s shares have gained 14.9% in the past year compared with 21.6% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Nutrien currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Albemarle Corporation (ALB - Free Report) , Commercial Metals Company (CMC - Free Report) and Reliance Steel & Aluminum Co. (RS - Free Report) .
Albemarle, currently carrying a Zacks Rank #2 (Buy), has a projected earnings growth rate of 430.9% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 5.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 24.2%, on average. ALB has gained around 10% in a year.
Commercial Metals currently carries a Zacks Rank #2. The Zacks Consensus Estimate for CMC's current-year earnings has been revised 3.8% upward in the past 60 days.
Commercial Metals’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 19.7%, on average. CMC has gained around 34% in a year.
Reliance Steel, currently carrying a Zacks Rank #2, has a projected earnings growth rate of 29.7% for the current year. The Zacks Consensus Estimate for RS's current-year earnings has been revised 0.1% upward in the past 60 days.
Reliance Steel’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 13.6%, on average. RS has gained around 25% in a year.