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The company surpassed Zacks Consensus Estimate for earnings in two of the last four quarters while missing it twice, the average surprise being a negative 6.3%. It posted a negative earnings surprise of 36% in the last reported quarter.
NTR is expected to have benefited from strong demand across its segments. However, higher natural gas prices are expected to have posed a headwind in the fourth quarter.
The stock has gained 9.1% in the past year compared with the industry’s rise of 8.6%.
Image Source: Zacks Investment Research
What Do the Estimates Say?
The Zacks Consensus Estimate for the to-be-reported quarter is currently pegged at $7,549 million, which indicates a rise of 3.9% from the year-ago reported number.
The Zacks Consensus Estimate for net sales in the Potash segment currently stands at $1,630 million, implying a year-over-year jump of 14.8%. The consensus Estimate for its Phosphate segment is currently pegged at $636 million, which indicates a rise of 7.3%. The Zacks Consensus Estimate for NTR’s Nitrogen segment currently stands at $2,055 million, suggesting an increase of 24.6%.
Some Factors to Watch
NTR is likely to have benefited from solid demand and higher prices for fertilizers in the fourth quarter, backed by the strength in the global agricultural market. The company is expected to have gained from strong potash sales volume backed by pent-up demand and actions to boost production. Strong grower economics are also expected to have increased sales of Phosphate and Potash in North America.
Potash prices are likely to have been supported by tight supply in the December quarter. Tight inventory, along with healthy demand, is also expected to have driven phosphate prices. Lower global supply availability stemming from reduced operating rates, strong demand and a spike in energy prices are likely to have aided nitrogen prices in the quarter to be reported.
However, natural gas curtailments in Trinidad are expected to have adversely impacted the company’s nitrogen business, affecting volumes. Higher natural gas costs are also likely to have led to a rise in the company’s cost of goods sold per ton for nitrogen. Higher gas costs might have affected the company’s nitrogen margins in the fourth quarter.
Zacks Model
Our proven model does not conclusively predict an earnings beat for Nutrien this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings Beat: Earnings ESP for Nutrien is -2.06%. The Zacks Consensus Estimate for earnings for the fourth quarter is currently pegged at $2.63. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: NTR currently carries a Zacks Rank #5 (Strong Sell).
Here are some companies in the basic materials space you may want to consider, as our model shows these have the right combination of elements to post earnings beat this quarter:
The Zacks Consensus Estimate for earnings for KWR for the fourth-quarter is pegged at $1.22.
CF Industries Holdings, Inc. (CF - Free Report) , slated to release earnings on Feb 15, has an Earnings ESP of +1.33% and carries a Zacks Rank #3. The consensus estimate for CF’s earnings for the fourth quarter is currently pegged at $4.13.
Franco-Nevada Corporation (FNV - Free Report) , scheduled to release earnings on Mar 15, has an Earnings ESP of +0.78% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for FNV’s earnings for the fourth quarter is currently pegged at 86 cents.
Image: Bigstock
Nutrien (NTR) to Report Q4 Earnings: What's in the Offing?
Nutrien Ltd. (NTR - Free Report) is scheduled to report fourth-quarter 2022 earnings after the closing bell on Feb 15.
The company surpassed Zacks Consensus Estimate for earnings in two of the last four quarters while missing it twice, the average surprise being a negative 6.3%. It posted a negative earnings surprise of 36% in the last reported quarter.
NTR is expected to have benefited from strong demand across its segments. However, higher natural gas prices are expected to have posed a headwind in the fourth quarter.
The stock has gained 9.1% in the past year compared with the industry’s rise of 8.6%.
Image Source: Zacks Investment Research
What Do the Estimates Say?
The Zacks Consensus Estimate for the to-be-reported quarter is currently pegged at $7,549 million, which indicates a rise of 3.9% from the year-ago reported number.
The Zacks Consensus Estimate for net sales in the Potash segment currently stands at $1,630 million, implying a year-over-year jump of 14.8%. The consensus Estimate for its Phosphate segment is currently pegged at $636 million, which indicates a rise of 7.3%. The Zacks Consensus Estimate for NTR’s Nitrogen segment currently stands at $2,055 million, suggesting an increase of 24.6%.
Some Factors to Watch
NTR is likely to have benefited from solid demand and higher prices for fertilizers in the fourth quarter, backed by the strength in the global agricultural market. The company is expected to have gained from strong potash sales volume backed by pent-up demand and actions to boost production. Strong grower economics are also expected to have increased sales of Phosphate and Potash in North America.
Potash prices are likely to have been supported by tight supply in the December quarter. Tight inventory, along with healthy demand, is also expected to have driven phosphate prices. Lower global supply availability stemming from reduced operating rates, strong demand and a spike in energy prices are likely to have aided nitrogen prices in the quarter to be reported.
However, natural gas curtailments in Trinidad are expected to have adversely impacted the company’s nitrogen business, affecting volumes. Higher natural gas costs are also likely to have led to a rise in the company’s cost of goods sold per ton for nitrogen. Higher gas costs might have affected the company’s nitrogen margins in the fourth quarter.
Zacks Model
Our proven model does not conclusively predict an earnings beat for Nutrien this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings Beat: Earnings ESP for Nutrien is -2.06%. The Zacks Consensus Estimate for earnings for the fourth quarter is currently pegged at $2.63. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: NTR currently carries a Zacks Rank #5 (Strong Sell).
Nutrien Ltd. Price and EPS Surprise
Nutrien Ltd. price-eps-surprise | Nutrien Ltd. Quote
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider, as our model shows these have the right combination of elements to post earnings beat this quarter:
Quaker Chemical Corporation (KWR - Free Report) , scheduled to release earnings on Feb 23, has an Earnings ESP of +7.38% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks Rank #1 stocks here.
The Zacks Consensus Estimate for earnings for KWR for the fourth-quarter is pegged at $1.22.
CF Industries Holdings, Inc. (CF - Free Report) , slated to release earnings on Feb 15, has an Earnings ESP of +1.33% and carries a Zacks Rank #3. The consensus estimate for CF’s earnings for the fourth quarter is currently pegged at $4.13.
Franco-Nevada Corporation (FNV - Free Report) , scheduled to release earnings on Mar 15, has an Earnings ESP of +0.78% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for FNV’s earnings for the fourth quarter is currently pegged at 86 cents.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.