Sales expectations

So far in this series, we’ve reviewed agribusiness companies’ 2017 performance and 2018 expectations. In this part, we’ll review analysts’ sales growth estimates for 2018.

Sales Expectations for Agribusiness Companies in 2018

Growth estimates

As shown in the above chart, agribusiness companies, excluding Israel Chemicals (ICL) and CVR Partners (UAN), are expected to see lower sales growth year-over-year in fiscal 2017. Keep in mind that most companies, except for Monsanto (MON), have yet to release their fourth-quarter results.

All companies but CVR Partners are expected to see higher sales growth year-over-year, with FMC expected to report 55% sales growth in fiscal 2018, CF Industries (CF) expected to report 8% sales growth, Monsanto expected to report 5% sales growth, Israel Chemicals expected to report 3% sales growth, and Intrepid Potash (IPI) expected to report 1% sales growth. CVR Partners’ sales growth is expected to fall from 14% to 13% in 2018, and Mosaic’s (MOS) is expected to fall 1%.

In the above chart, we can also see that the expected trend for 2019 is mixed, with some companies seeing higher sales growth and others seeing lower growth. However, estimates beyond one year should be used with caution. Next, we’ll discuss these companies’ margin expectations.

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