CF’s earnings preview
CF Industries (CF) is expected to announce its 1Q16 earnings on May 4, 2016. The company, which reported EPS (earnings per share) growth of 7% in 1Q15, is expected to report an EPS of $0.41. This would translate into -58% growth in earnings YoY (year-over-year).
CF’s performance so far
CF Industries (CF) has so far been the worst performer in 2016 in comparison with the peers shown in the chart above. CF has lost 17% of its value since January 2016, with the stock trading at $33.70 as of April 27. However, Terra Nitrogen (TNH) in which CF has a 75% interest, has been the best performer with a 22% return YTD (year-to-date). Over a one-year period, CF is down by 42% while the S&P 500 Index is down by only 1.4% and MOO is down by 12.1%.
PotashCorp (POT), which has exposure to nitrogen fertilizers, has also fared better than CF returning 4% YTD. Agrium (AGU) and CVR Partners (UAN) are also in the red with returns of -4% and -0.5% YTD.
The benchmark S&P 500 Index has returned 2.3% and the ETF VanEck Vectors Agribusiness ETF (MOO) has returned 5.1% YTD. MOO invests about 30% in agricultural chemical companies such as Israel Chemical (ICL).
With CF Industries (CF) set to release its 1Q16 earnings, this series will give you an insight into expectations for the company’s key metrics such as revenue, margins, and earnings per share. We will also look at the CF’s valuation as well as the analysts’ recommendations and price target over the next 12 months.