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CF Industries' Earnings and Sales Surpass Estimates in Q4
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CF Industries Holdings, Inc. (CF - Free Report) logged fourth-quarter 2024 earnings of $1.89 per share, up from $1.44 in the year-ago quarter. The figure beat the Zacks Consensus Estimate of $1.49.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Net sales fell around 3% year over year to $1,524 million in the quarter. It, however, beat the Zacks Consensus Estimate of $1,466.4 million.
Average selling prices in 2024 were lower than in 2023 due to lower global energy costs, which reduced the global clearing price required to meet demand. Sales volumes for 2024 were similar to those in 2023, with higher ammonia sales volumes offset by lower urea ammonium nitrate solution (UAN), ammonium nitrate (AN) and other sales volumes.
CF Industries Holdings, Inc. Price, Consensus and EPS Surprise
Net sales in the Ammonia segment increased 15.5% year over year to $572 million in the reported quarter. It topped our estimate of $447.5 million. Average selling price per product ton was $461, which beat our estimate of $414. Ammonia adjusted gross margin per ton dropped in 2024 from 2023, owing mostly to lower average selling prices and increased maintenance expenses, which were slightly offset by lower realized natural gas costs.
Sales in the Granular Urea segment fell around 11.2% year over year to $348 million. It missed our estimate of $355.6 million. Average selling price per product ton was $347, which topped our estimate of $337. Granular urea adjusted gross margin per ton declined in 2024 from 2023, owing to lower average selling prices offset by reduced realized natural gas costs.
Sales in the Urea Ammonium Nitrate segment fell around 11% year over year to $372 million. It beat our estimate of $369.9 million. Average selling price per product ton was $231, which surpassed our estimate of $207. UAN adjusted gross margin per ton declined in 2024 from 2023, owing to lower average selling prices offset by lower realized natural gas costs.
Sales in the Ammonium Nitrate segment fell around 15.8% year over year to $101 million. It beat our estimate of $95.5 million. Average selling price per product ton was $283, which outpaced our estimate of $228. AN adjusted gross margin per ton dropped in 2024 from 2023, owing mostly to lower average selling prices, which were slightly offset by lower maintenance and realized natural gas expenses.
CF’s FY24 Results
Earnings for full-year 2024 were $6.74 per share, down from $7.87 a year ago. Net sales declined around 10.5% year over year to $5,936 million.
CF’s Financials
CF Industries ended 2024 with cash and cash equivalents of $1,614 million, down around 20.6% year over year.
Net cash provided by operating activities was $420 million in the reported quarter, down around 12.5% year over year.
The company repurchased 18.8 million shares for $1.51 billion in 2024, including 4.4 million shares for $385 million in the fourth quarter of 2024.
CF’s Outlook
In the near future, the company expects the global supply-demand balance to continue to be positive since inventories around the globe are considered to be below normal and production economics for the industry's marginal producers in Europe remain challenging.
CF currently expects average U.S. corn returns to be higher than soybeans, owing in part to rising corn prices as a result of robust corn exports and lower 2024 yield predictions, which are projected to benefit corn plantings and nitrogen demand in the region.
Nitrogen imports to Brazil are likely to remain high in 2025 due to anticipated high corn plantings and ongoing minimal domestic nitrogen output.
Urea inventory in India is predicted to be low due to strong domestic demand for urea, lower-than-targeted domestic urea output and lower urea import volumes in 2024 compared to 2023.
CF’s Stock Price Performance
Shares of CF Industries have gained 8.6% in the past year compared with a 2.2% rise of the industry.
Image Source: Zacks Investment Research
CF’s Zacks Rank & Key Picks
CF currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth a look in the basic materials space include ICL Group Ltd. (ICL - Free Report) , Fortuna Mining Corp. (FSM - Free Report) and Kronos Worldwide (KRO - Free Report) .
ICL is slated to report fourth-quarter results on Feb. 26. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 6 cents. ICL beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 18.1%. ICL carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fortuna is scheduled to release fourth-quarter results on March 5. The Zacks Consensus Estimate for FSM’s fourth-quarter earnings is pegged at 16 cents. FSM, a Zacks Rank #2 stock, has gained around 64.6% in the past year. FSM beat the Zacks Consensus Estimate in two of the last four quarters, while missing twice with the average earnings surprise being 53.5%
Kronos is expected to report fourth-quarter results on March 5. The consensus estimate for KRO’s fourth-quarter earnings is pegged at 11 cents. KRO, carrying a Zacks Rank #2, beat the consensus estimate in three of the last four quarters while missing once, with the average earnings surprise being 41.7%.
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CF Industries' Earnings and Sales Surpass Estimates in Q4
CF Industries Holdings, Inc. (CF - Free Report) logged fourth-quarter 2024 earnings of $1.89 per share, up from $1.44 in the year-ago quarter. The figure beat the Zacks Consensus Estimate of $1.49.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Net sales fell around 3% year over year to $1,524 million in the quarter. It, however, beat the Zacks Consensus Estimate of $1,466.4 million.
Average selling prices in 2024 were lower than in 2023 due to lower global energy costs, which reduced the global clearing price required to meet demand. Sales volumes for 2024 were similar to those in 2023, with higher ammonia sales volumes offset by lower urea ammonium nitrate solution (UAN), ammonium nitrate (AN) and other sales volumes.
CF Industries Holdings, Inc. Price, Consensus and EPS Surprise
CF Industries Holdings, Inc. price-consensus-eps-surprise-chart | CF Industries Holdings, Inc. Quote
CF’s Segment Review
Net sales in the Ammonia segment increased 15.5% year over year to $572 million in the reported quarter. It topped our estimate of $447.5 million. Average selling price per product ton was $461, which beat our estimate of $414. Ammonia adjusted gross margin per ton dropped in 2024 from 2023, owing mostly to lower average selling prices and increased maintenance expenses, which were slightly offset by lower realized natural gas costs.
Sales in the Granular Urea segment fell around 11.2% year over year to $348 million. It missed our estimate of $355.6 million. Average selling price per product ton was $347, which topped our estimate of $337. Granular urea adjusted gross margin per ton declined in 2024 from 2023, owing to lower average selling prices offset by reduced realized natural gas costs.
Sales in the Urea Ammonium Nitrate segment fell around 11% year over year to $372 million. It beat our estimate of $369.9 million. Average selling price per product ton was $231, which surpassed our estimate of $207. UAN adjusted gross margin per ton declined in 2024 from 2023, owing to lower average selling prices offset by lower realized natural gas costs.
Sales in the Ammonium Nitrate segment fell around 15.8% year over year to $101 million. It beat our estimate of $95.5 million. Average selling price per product ton was $283, which outpaced our estimate of $228. AN adjusted gross margin per ton dropped in 2024 from 2023, owing mostly to lower average selling prices, which were slightly offset by lower maintenance and realized natural gas expenses.
CF’s FY24 Results
Earnings for full-year 2024 were $6.74 per share, down from $7.87 a year ago. Net sales declined around 10.5% year over year to $5,936 million.
CF’s Financials
CF Industries ended 2024 with cash and cash equivalents of $1,614 million, down around 20.6% year over year.
Net cash provided by operating activities was $420 million in the reported quarter, down around 12.5% year over year.
The company repurchased 18.8 million shares for $1.51 billion in 2024, including 4.4 million shares for $385 million in the fourth quarter of 2024.
CF’s Outlook
In the near future, the company expects the global supply-demand balance to continue to be positive since inventories around the globe are considered to be below normal and production economics for the industry's marginal producers in Europe remain challenging.
CF currently expects average U.S. corn returns to be higher than soybeans, owing in part to rising corn prices as a result of robust corn exports and lower 2024 yield predictions, which are projected to benefit corn plantings and nitrogen demand in the region.
Nitrogen imports to Brazil are likely to remain high in 2025 due to anticipated high corn plantings and ongoing minimal domestic nitrogen output.
Urea inventory in India is predicted to be low due to strong domestic demand for urea, lower-than-targeted domestic urea output and lower urea import volumes in 2024 compared to 2023.
CF’s Stock Price Performance
Shares of CF Industries have gained 8.6% in the past year compared with a 2.2% rise of the industry.
Image Source: Zacks Investment Research
CF’s Zacks Rank & Key Picks
CF currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth a look in the basic materials space include ICL Group Ltd. (ICL - Free Report) , Fortuna Mining Corp. (FSM - Free Report) and Kronos Worldwide (KRO - Free Report) .
ICL is slated to report fourth-quarter results on Feb. 26. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 6 cents. ICL beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 18.1%. ICL carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fortuna is scheduled to release fourth-quarter results on March 5. The Zacks Consensus Estimate for FSM’s fourth-quarter earnings is pegged at 16 cents. FSM, a Zacks Rank #2 stock, has gained around 64.6% in the past year. FSM beat the Zacks Consensus Estimate in two of the last four quarters, while missing twice with the average earnings surprise being 53.5%
Kronos is expected to report fourth-quarter results on March 5. The consensus estimate for KRO’s fourth-quarter earnings is pegged at 11 cents. KRO, carrying a Zacks Rank #2, beat the consensus estimate in three of the last four quarters while missing once, with the average earnings surprise being 41.7%.