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What You Need to Know about CF Industries’ 2Q17 Earnings

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CF Industries’ earnings

CF Industries (CF) reported its 2Q17 earnings on August 2. The company reported EPS (earnings per share) of $0.1, which was in line with analysts’ consensus estimate of $0.01 per share for the quarter. The earnings fell from $0.33 per share in the corresponding quarter last year. Let’s look at how the market reacted.

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Market reaction

On August 3, CF Industries was trading higher by as much as 7% at $30.7 per share compared to the previous day’s close. During the same period, Terra Nitrogen (TNH) was trading 64 basis points higher, while PotashCorp (POT) was trading about 1% higher compared to the previous day’s close. On the other hand, CVR Partners (UAN) was trading lower by 2.9 compared to its previous day’s close.

Compared to the previous day, the S&P 500 Index (SPY) was trading slightly lower by 21 basis points, while the VanEck Vectors Agribusiness ETF (MOO) was trading higher by 25 basis points compared to its close on August 2.

CF Industries’ results showed that the nitrogen industry is still struggling. The management pointed out that the excess capacity continued to affect price realization for producers and may continue to cast a shadow on nitrogen players.

Series overview

In this post earnings analysis series, we’ll discuss CF Industries’ earnings in more detail. We’ll primarily focus on sales, shipments, price realizations, and margins for the quarter.

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