CF Industries Earnings: Strong Margins, Net Income Pops

S&P 500 (NYSE:SPY) component CF Industries Holdings Inc. (NYSE:CF) reported net income above Wall Street’s expectations for the first quarter. CF Industries Holdings is a manufacturer and distributor of nitrogen and phosphate fertilizer products, including ammonia, urea, urea ammonium nitrate solution, diammonium phosphate, and monoammonium phosphate.

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CF Industries Holdings Earnings Cheat Sheet for the First Quarter

Results: Net income for CF Industries Holdings Inc. rose to $368.4 million ($5.54 per share) vs. $282 million ($3.91 per share) in the same quarter a year earlier. This marks a rise of 30.6% from the year-earlier quarter.

Revenue: Rose 30.1% to $1.53 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: CF Industries Holdings Inc. beat the mean analyst estimate of $4.95 per share. It beat the average revenue estimate of $1.26 billion.

Quoting Management: “We are pleased with the excellent financial results our company continues to produce. Record first quarter sales and earnings were underpinned by the strong demand that emerged as the quarter progressed and by the continuation of a favorable cost environment,” said Stephen R. Wilson, chairman and chief executive officer, CF Industries Holdings, Inc. “Our team took full advantage of this opportunity by executing very well.”

Key Stats:

The company has seen double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 58.7%, with the biggest boost coming in the first quarter of the last fiscal year when revenue rose more than twofold from the year earlier quarter.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 36 cents in the fourth quarter of the last fiscal year, by 34 cents in the third quarter of the last fiscal year, and by 93 cents in the second quarter of the last fiscal year.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the second quarter is $7.95 per share, up from $6.95 ninety days ago. For the fiscal year, the average estimate has moved up from $22.08 a share to $23.77 over the last ninety days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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