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What to Expect from CF Industries’ Third-Quarter Earnings

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CF to report earnings

CF Industries (CF) plans to report its earnings on October 31 after the market closes. The company plans to hold its earnings call on November 1 at 9:00 AM. Wall Street analysts estimate the company’s sales will come in at ~$1 billion, which would be almost a 14% year-over-year increase from $0.87 billion in the corresponding quarter of last year.

Margins to expand

The company’s gross margin is expected to expand during the quarter to 18% compared to just about 1% in the third quarter of 2017. Analyst expectations for EBITDA margins are also positive. The consensus estimate is for an expansion to 31.2% compared to 15.4% over the same period. Not surprisingly, this positive momentum in the company’s sales and margins is expected to trickle down to the company’s EPS, which is expected to come in at $0.15 per share compared to a loss per share of $0.39 a year ago.

Fertilizer stocks (MOO) such as CF Industries, Mosaic (MOS), and Israel Chemicals (ICL) have had a good run with fertilizer prices gaining significant momentum in 2018 compared to last year. All three NPK (nitrogen, phosphorous, and potassium) fertilizers reached two-year peaks recently. To learn more, read How Fertilizer Stocks and Prices Moved Last Week.

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