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.
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.
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.