CF Industries Holdings Inc. Earnings: Fifth straight Quarter of Expanding Margins, Net Income Climbs

S&P 500 (NYSE:SPY) component CF Industries Holdings Inc. (NYSE:CF) reported higher profit for the fourth quarter as revenue showed growth. 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 Fourth Quarter

Results: Net income for CF Industries Holdings Inc. rose to $438.9 million ($6.66 per share) vs. $200.3 million ($2.78 per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter.

Revenue: Rose 38.8% to $1.72 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: CF Industries Holdings Inc. fell short of the mean analyst estimate of $6.77 per share. It beat the average revenue estimate of $1.65 billion.

Quoting Management: “Our team executed very well and took advantage of every opportunity the market provided,” commented Stephen R. Wilson, chairman and chief executive officer, CF Industries Holdings, Inc. “Our selling discipline and focus on maximizing margins throughout the year provided a very good order book entering the fourth quarter, which helped us achieve record fourth quarter EPS even in an increasingly challenging environment.”

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 81.5%, 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 fell short of forecasts after beating estimates in the previous two quarters. In the third quarter, it topped the mark by 34 cents, and in the second quarter, it was ahead by 93 cents.

Looking Forward: Expectations for the company’s next quarter results are lower than they have been. Over the past sixty days, the average estimate for first quarter of the next fiscal year has fallen from $5.11 per share to $5. The average estimate for the fiscal year is now $22.42 per share, down from $22.63 sixty days ago.

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

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