CF Industries (CF) is set to release its 4Q15 earnings on February 17 after the market closes. Year-to-date, CF Industries has fallen 28.8%. The Mosaic Company (MOS) has fallen 15%. PotashCorp (POT) has fallen 8.4%, and Isreal Chemicals (ICL) has fallen 1.7%. The broader VanEck Vectors Agribusiness ETF (MOO) has trended with these companies to return -9.2% year-to-date.
Share price sinking
In 3Q15, CF reported earnings per share of $0.47, which fell 16.5% year-over-year. Over the past year, CF’s share prices have fallen and traded at a low compared to previous periods. The market is concerned about low natural gas prices, which could affect CF’s position in the market if they lead to more supply. There’s also a concern that coal prices have fallen and the Chinese currency is devalued, which would likely impact fertilizer prices.
In this pre-earning series, we’ll discuss some of the key topics that will be important during CF’s 4Q15 earnings call. These include fertilizer prices, shipments, and other factors that affect the company’s performance. We’ll wrap up this series by looking at valuation multiples, analyst recommendations, and price targets for the company.