Rentech Nitrogen Partners Earnings: Here’s Why Shares are Down Now

Rentech Nitrogen Partners LP (NYSE:RNF) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 2.93%.

Rentech Nitrogen Partners LP Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 96.3% to $0.04 in the quarter versus EPS of $1.08 in the year-earlier quarter.

Revenue: Rose 70.16% to $120.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Rentech Nitrogen Partners LP reported adjusted EPS income of $0.04 per share. By that measure, the company missed the mean analyst estimate of $0.90. It missed the average revenue estimate of $142.12 million.

Quoting Management: D. Hunt Ramsbottom, CEO of Rentech Nitrogen GP, LLC, stated, “We reported good results this quarter, considering that demand and product prices were softer than forecasted, with unfavorable spring weather and significant offshore urea supplies affecting the entire industry.” Mr. Ramsbottom continued, “We took advantage of market liquidity and demand during the past month and have locked-in nearly all of the East Dubuque Facility’s forecasted deliveries for the year at competitive prices. We’re also seeing a rebound of product margins at the Pasadena Facility, from the lower levels earlier this summer when product prices had dropped faster than input prices embedded in our cost of sales, and we had to absorb lower margins on some higher cost inventories carried over from the delayed spring season.”

Key Stats (on next page)…

Revenue increased 101.81% from $59.56 million in the previous quarter. EPS decreased 89.47% from $0.38 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 $0.61 to a profit $0.52. For the current year, the average estimate has moved down from a profit of $2.62 to a profit of $2.21 over the last ninety days.

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