|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||20.60 - 21.04|
|52 Week Range||20.60 - 21.04|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
CF Industries (CF) reported its 1Q18 earnings on May 2 after the market closed. Since then, the stock is about 1% higher as of May 10 at $39.41. While the company beat analysts’ EPS (earnings per share) estimates, the stock took a beating due to a weaker-than-expected quarter. To learn more about CF Industries’ earnings, read Snapshot: CF Industries Reports Its 1Q18 Earnings.
Nutrien (NTR) reported earnings on May 7 after the market closed. Much of the recent surge in the company’s stock appears to have come from its merger talks with Sociedad Química y Minera de Chile (SQM), which is one of the largest lithium producers (LIT).
Last week, DAP (diammonium phosphate) prices were broadly flat to positive WoW (week-over-week) and much higher YoY (year-over-year). WoW, Central Florida DAP prices rose 51 basis points to $358 per metric ton from $357 per metric ton, and YoY, they rose ~20% from $297 per metric ton. Similarly, DAP prices in Morocco rose 48 basis points WoW to $420 per metric ton from $418 per metric ton, and 13% YoY from $373 per metric ton.
Last week was broadly negative for urea prices, with average NOLA (New Orleans) and Brazilian prices declining WoW (week-over-week). Also, CF Industries (CF) reported its earnings on May 2 and gave some updates on urea prices. Let’s look at these developments.
Last week, MAP (monoammonium phosphate) prices mimicked the movements in DAP (diammonium phosphate) prices, which fell week-over-week, as we discussed earlier.
MAP (monoammonium phosphate) prices last week were broadly negative, which was similar to the weakness in DAP (diammonium phosphate) prices last week that we discussed in the earlier part of this series.
After the earnings were released, the stock price took a significant beating. Out of the 18 analysts in the above chart, ~22% or four analysts have a “strong buy” recommendation on the stock for the next 12-month period. About 39% or seven analysts have a “buy” recommendation on the stock, while 39% or seven analysts have a “hold” recommendation for Nutrien.
According to Mosaic, the margin expansion was due to higher realized prices, which we discussed earlier, and lower input costs such as phosphate rock costs. Agrium’s gross margins took a hit as a result of a higher input cost of phosphate rock and sulfur.
Nutrien, the world's biggest fertilizer company by capacity, also said higher input costs would shrink nitrogen and phosphate margins. The company, reporting its first results since the merger, said it expects full-year earnings before interest, taxes, depreciation and amortization of $3.2 billion to $3.7 billion, and earnings per share of between $2.10 and $2.60. Chief Executive Chuck Magro said that following the merger, the company achieved $40 million in run-rate synergies and was "focused on capturing half a billion dollars" in annual merger synergies by the end of 2019.
Nutrien also said fourth-quarter net earnings for Agrium fell to $18 million, or 13 cents per share, in the fourth quarter ended Dec 31 from $67 million, or 49 cents per share, a year earlier. Potash Corp reported a net loss from continuing operations of $120 million, or 14 cents per share, from a profit of $13 million, or 2 cents per share, a year earlier. Agrium's total sales rose 9.5 percent to $2.45 billion, while Potash Corp's sales were up 2 percent at $1.08 billion.
For the 52nd week of 2017 (ended December 30), Canadian Pacific Railway (CP) witnessed a 9.1% fall in its carload traffic. CP’s fall in carload traffic was steeper than the decline posted by US railroads overall, but compared with Canadian railroads’ freight volume loss, CP’s carload traffic loss was on par.
Nutrien Ltd, the fertilizer company formed this week by a merger of Potash Corp of Saskatchewan and Agrium, has committed to establishing its head office in the Canadian province of Saskatchewan and increasing corporate office jobs there, Saskatchewan premier Brad Wall said on Thursday. Wall said that in recent meetings, Nutrien's leading executives agreed to increase corporate office positions in Saskatchewan by 15 percent, to 300.
Nutrien Ltd. (TSX:NTR)(NYSE:NTR) hit the TSX, but should you pick it up? Or are the combined synergies going to be lacklustre?
Can Nutrien, the combined Potash Corporation of Saskatchewan Inc. (TSX:POT)(NYSE:POT) and Agrium Inc. (TSX:AGU)(NYSE:AGU) firm, shoot even higher in 2018?