CVR Partners (UAN) Q3 Earnings Miss Estimates, Sales Up Y/Y

CVR Partners, LP UAN logged a loss of $13 million or 12 cents per share in the third quarter of 2018, compared with a loss of $32 million or 28 cents a year ago. The reported loss was wider than the Zacks Consensus Estimate of a loss of 10 cents.

CVR Partners raked in net sales of $80 million, up around 16% year over year. 

CVR Partners, LP Price, Consensus and EPS Surprise

 

CVR Partners, LP Price, Consensus and EPS Surprise | CVR Partners, LP Quote

Operational Statistics

CVR Partners produced 212,000 tons of ammonia in the third quarter (up from 181,000 tons produced a year ago), of which, 63,000 net tons were available for sale while the rest was upgraded to other fertilizers including 338,000 tons of urea ammonium nitrate (UAN).

In the reported quarter, consolidated average realized gate prices for UAN and ammonia were $170 and $297 per ton, respectively, up around 23% and 39% year over year in that order.

Financials

CVR Partners ended the quarter with cash and cash equivalents of $61.4 million, down around 12.2% year over year. Total debt increased to $628.2 million in the quarter from $625.2 million a year ago.

Outlook

During third-quarter 2018, CVR Partners saw strong global demand for nitrogen fertilizer as market conditions improved since summer. Product pricing for the late fall of 2018 has increased by around 25% from the summer fill season and the company is witnessing pricing strength into the first quarter of 2019.
 
Price Performance

Shares of CVR Partners have gained 12.1% in a year’s time, outperforming the industry’s 3.4% rise.

 

Zacks Rank & Stocks to Consider

CVR Partners currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the basic materials space are CF Industries Holdings, Inc. CF, KMG Chemicals, Inc. KMG and The Mosaic Company MOS.
 
CF Industries has an expected long-term earnings growth rate of 6% and a Zacks Rank #1 (Strong Buy). The company’s shares have gained 16.9% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

KMG Chemicals has an expected long-term earnings growth rate of 28.5% and a Zacks Rank #1. Its shares have risen 35.6% in a year’s time.

Mosaic has an expected long-term earnings growth rate of 7% and a Zacks Rank #2 (Buy). The company’s shares have rallied 33.5% in the past year.

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