uploads///EBITDA and EBITDA Margin

Will CF Industries See Operating Margin Growth in 1Q18?


Apr. 30 2018, Updated 7:32 a.m. ET

Operating income

Earlier, we saw that CF Industries’ (CF) gross margins are estimated to expand year-over-year in 1Q18 and in fiscal 2018. The EBITDA (earnings before interest, tax, depreciation, and amortization) margin gives us further insight into expectations surrounding the company’s cost initiatives.

Article continues below advertisement

Analyst estimates

For 1Q18, CF Industries’ EBITDA (earnings before interest, tax, depreciation, and amortization) are estimated to grow year-over-year by 22% to $333 million from $272 million a year ago, which also translates into margin growth from 26.2% to 31.2%.

Similarly, the EBITDA for fiscal 2018 is estimated to grow 39% year-over-year to $1.3 billion from $0.97 million in fiscal 2017, which translates into margin expansion for fiscal 2018 from 23.5% to 30.5% year-over-year.

Peer (MOO) Mosaic (MOS) has similar expectations for EBITDA margin growth for 1Q18 as well. Mosaic’s EBITDA margins are estimated to expand to 21.2% from ~12% a year ago in 1Q17.

In a more recent confirmation of the uptrend, Intrepid Potash (IPI), which reported its earnings on April 24, saw its EBITDA margins improve significantly year-over-year. The company reported EBITDA of $11.5 million, which rose from -$0.67 million a year ago. The margin for 1Q18 was 21.5%, which was a significant improvement from an operating loss a year ago.


More From Market Realist

  • Steel coils at a X plant
    Basic Materials
    U.S. Steel Stock (X) Could Rise More Amid Commodity Supercycle
  • New home construction
    Basic Materials
    How Investors Can Play Surging Lumber Prices in 2021
  • MP Materials mine
    Basic Materials
    MP Materials (MP) Is an Attractive Play on Rare Earths
  • Woman looking at data
    Basic Materials
    Should You Buy SLV Stock Before Another Silver Short Squeeze?
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.