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CVR Partners (UAN) Posts Loss in Q4, Sales Beat

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CVR Partners, LP (UAN - Free Report) makes and markets nitrogen fertilizers including ammonia and urea ammonium nitrate (“UAN”) in the U.S. Its products are used mainly by growers to improve yield and quality of their crops.
 
CVR Partners remains committed to ramp up its UAN production capacity. However, the company remains exposed to headwinds from weak nitrogen fertilizer prices. Its operations are also subject to the risks of production outages.

Let’s have a quick look at the company’s fourth-quarter 2016 release.
 
Estimate Trend & Surprise History
 
Investors should note that the earnings estimate for CVR Partners for the fourth quarter has been static over the last month. The company has beaten the Zacks Consensus Estimate in 2 of the trailing 4 quarters while missing twice.

CVR Partners, LP Price and EPS Surprise

 

CVR Partners, LP Price and EPS Surprise | CVR Partners, LP Quote

Earnings
 
CVR Partners posted loss per share of 13 cents for the quarter. Analysts polled by Zacks were expecting earnings of 3 cents per share on an average.
 
Revenues
 
CVR Partners reported revenues of $84.9 million, beating the Zacks Consensus Estimate of $84.7 million.
 
Key Developments to Note
 
CVR Partners produced 207,600 tons of ammonia and purchased an additional 2,000 tons in the quarter of which 62,600 net tons were available for sale while the rest was upgraded to other fertilizers including 330,700 tons of UAN.
 
Zacks Rank
 
Currently, CVR Partners has a Zacks Rank #3 (Hold), but that could change following the company’s earnings report which was just released.
 
Market Reaction
 
CVR Partners’ shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.
 
Check back later for our full write up on CVR Partners’ earnings report!

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