CVR Partners LP Earnings: Here’s Why Shares are Up Now

CVR Partners LP (NYSE:UAN) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.18%.

CVR Partners LP Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 0% to $0.48 in the quarter versus EPS of $0.48 in the year-earlier quarter.

Revenue: Rose 9.05% to $88.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: CVR Partners, LP Common Units representing Limited Partner Interests reported adjusted EPS income of $0.48 per share. By that measure, the company missed the mean analyst estimate of $0.54. It beat the average revenue estimate of $86.22 million.

Quoting Management: “We are pleased with our solid financial results for the second quarter of 2013,” said Byron Kelley, president and chief executive officer. “We benefited from the first full quarter of operations from our expanded UAN plant, which produced a record 225,200 tons of UAN. Additionally, an increase in sales prices for ammonia and UAN, as well as the net impact of our hydrogen sales to the adjacent refinery, positively impacted our year-over-year quarterly comparisons.
“Although we saw an increase in our net sales, our second quarter results were partially offset by two externally-driven occurrences that shut down the ammonia synthesis loop and the UAN plant for a total of nine days in late May and early June and damaged the catalyst used in the production of ammonia,” Kelley said. “These events led to lower on-stream rates and reduced ammonia production compared to the 2012 second quarter.”

Key Stats (on next page)…

Revenue increased 9.08% from $81.41 million in the previous quarter. EPS decreased 2.04% from $0.49 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.46 to a profit $0.41. For the current year, the average estimate has moved down from a profit of $1.99 to a profit of $1.87 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)