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What to Expect from CF Industries’ 2Q17 Earnings

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CF Industries’ 2Q17 earnings

CF Industries (CF) is set to announce its 2Q17 earnings after the market closes on August 2, 2017. According to Wall Street analysts’ consensus estimate, the company is expected to report EPS (earnings per share) of $0.01 in the quarter, down from $0.33 in 2Q16.

While the company is expected to report a huge fall in its earnings, its stock has beaten the benchmark indexes. Let’s take a look in more detail.

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Benchmark comparison

In the last year, CF Industries has returned 18%, beating the S&P 500 Index’s (SPY) return of 14.6% for the same period. The company has also beat the VanEck Vectors Agribusiness ETF (MOO), which has returned 14.3% in the same period.

The company has also beat its peers PotashCorp (POT), CVR Partners (UAN), and Agrium (AGU). These three stocks underperformed even the benchmarks discussed in the chart above.

In 2017, CF Industries stock has struggled due to continued pressure on nitrogen fertilizer players resulting from excess capacity pressure. While the industry’s players are continuing to ration their capacity expansion projects, the upside on fertilizer prices remains in question for the near term.

CF Industries is one of the largest producers of nitrogen fertilizers in North America, and it enjoys a strategic advantage over international players. Because the United States is a net importer of nitrogen fertilizers, the company can supply to its customers at lower costs.

Series overview

In this series, we’ll discuss analysts’ expectations for the company’s key financial metrics. We’ll also look at the company’s valuation in the concluding part of this series.

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