CF Industries Holdings Earnings Cheat Sheet: Revenue Grows By Double-Digits For Fifth Straight Quarter

S&P 500 (NYSE:SPY) component CF Industries Holdings, Inc. (NYSE:CF) reported net income above Wall Street’s expectations for the second quarter. CF Industries Holdings Inc 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 Second Quarter

Results: Net income for the agricultural chemicals company rose to $487.4 million ($6.75 per share) vs. $105.1 million ($1.54 per share) in the same quarter a year earlier. This is a more than fourfold rise from the year earlier quarter.

Revenue: Rose 37.8% to $1.8 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: CF beat the mean analyst estimate of $5.94 per share. It beat the average revenue estimate of $1.76 billion.

Quoting Management: “Under current industry conditions, we believe CF Industries continues to be well positioned to deliver strong profitability and cash flow,” said Stephen R. Wilson, chairman and chief executive officer. “We continue to benefit from high operating rates, attractive natural gas costs and a favorable pricing environment driven by strong grain prices and low crop nutrient inventories.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 92.2%, with the biggest boost coming in the fourth 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 three quarters. It beat the mark by 58 cents in the first quarter and by 3 cents in the fourth quarter of the last fiscal year.

Gross margins grew 17.8 percentage points to 48.1%. The growth seemed to be driven by increased revenue, as the figure rose 37.8% from the year earlier quarter while costs rose 2.5%.

Competitors to Watch: The Mosaic Company (NYSE:MOS), Agrium Inc. (NYSE:AGU), Terra Nitrogen Co., L.P. (NYSE:TNH), Potash Corp./Saskatchewan (NYSE:POT), Converted Organics Inc. (NASDAQ:COIN), The Scotts Miracle-Gro Co. (NYSE:SMG), LSB Industries, Inc. (NYSE:LXU), China Green Agriculture, Inc (NYSE:CGA), China Agritech Inc. (NASDAQ:CAGC), and Bodisen Biotech, Inc. (BBCZ).

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(Source: Xignite Financials)