Yahoo Finance CF Industries (CF) to Report Q1 Earnings: What's in Store?
CF Industries Holdings, Inc. CF is set to release first-quarter 2023 results on May 1, after the closing bell.
CF Industries beat the Zacks Consensus Estimate for earnings in two of the trailing four quarters while missed once and delivered in line result on the other occasion. The company has a trailing four-quarter negative earnings surprise of 3.2%, on average. CF’s first-quarter performance will likely reflect the impacts of softer nitrogen prices. High natural gas costs are also likely to have affected margins in the quarter.
Shares of CF Industries have declined 25.5% in the past year compared with a 29.3% decline of the industry.
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Let’s see how things are shaping up for this announcement.
What Do the Estimates Indicate?
The Zacks Consensus Estimate for CF Industries' first-quarter total sales is currently pegged at $1,894 million, which indicates a 34% decline year over year.
The Zacks Consensus Estimate for total sales in the Ammonia segment is currently pegged at $533 million, calling for a 16.7% decline on a year-over-year basis. The same for the Granular Urea segment is $456 million, which suggests a decrease of 40.4% year over year.
The consensus mark for sales of the Urea Ammonium Nitrate Solution segment is currently pegged at $570 million, which suggests a decline of 43.8% year over year.
The Zacks Consensus Estimate for total sales of the Ammonium Nitrate segment is currently pegged at $174 million, which indicates a decline of 22% year over year.
Factors at Play in Q1
CF Industries is likely to have gained from higher nitrogen fertilizer demand in major markets in the March quarter. Global nitrogen demand is expected to have remained healthy, driven by higher commodity futures prices and favorable farm economics.
However, weaker nitrogen prices are likely to have hurt the company’s sales and margins in the first quarter. Global nitrogen prices have declined since the beginning of 2023.
Higher natural gas costs, partly stemming from elevated natural gas costs in Europe, are also likely to have increased the cost of sales and affected the company’s margins in the quarter to be reported.
CF Industries Holdings, Inc. Price and EPS Surprise
CF Industries Holdings, Inc. price-eps-surprise | CF Industries Holdings, Inc. Quote
Zacks Model
Our proven model does not conclusively predict an earnings beat for CF Industries this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for CF Industries is -4.75%. The Zacks Consensus Estimate for first-quarter earnings is currently pegged at $2.63. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: CF Industries currently carries a Zacks Rank #4 (Sell).
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider, as our model shows these have the right combination of elements to post an earnings beat this quarter:
Albemarle Corporation ALB, slated to release earnings on May 3, has an Earnings ESP of +0.80%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Albemarle’s earnings for the quarter is pegged at $6.93. ALB currently carries a Zacks Rank #3.
Axalta Coating Systems Ltd. AXTA, slated to release earnings on May 2, has an Earnings ESP of +4.35%.
The consensus estimate for Axalta Coating Systems’ earnings for the first quarter is currently pegged at 31 cents. AXTA currently carries a Zacks Rank #3.
Pan American Silver Corp. PAAS, scheduled to release earnings on May 10, has an Earnings ESP of +167.10% and currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Pan American Silver’s first-quarter earnings has been revised 66.7% upward in the past 60 days. The consensus estimate for PAAS’ earnings for the first quarter is currently pegged at 5 cents.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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CF Industries Holdings, Inc. (CF) : Free Stock Analysis Report
Albemarle Corporation (ALB) : Free Stock Analysis Report
Pan American Silver Corp. (PAAS) : Free Stock Analysis Report
Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report
