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 1.35%.

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Rentech Nitrogen Partners LP Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 25.49% to $0.38 in the quarter versus EPS of $0.51 in the year-earlier quarter.

Revenue: Rose 54.82% to $59.56 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Rentech Nitrogen Partners LP reported adjusted EPS income of $0.38 per share. By that measure, the company missed the mean analyst estimate of $0.52. It missed the average revenue estimate of $82.21 million.

Quoting Management: D. Hunt Ramsbottom, CEO of Rentech Nitrogen GP, LLC, stated, “This quarter is the first period during which we benefited from a full three months of the Pasadena Facility’s operations. Individually, the East Dubuque and Pasadena facilities achieved solid gross margins of 54% and 16%.” Mr. Ramsbottom continued, “We experienced a wet spring and ammonia deliveries got off to a slower start than they did last year, but soil conditions improved at the end of April, which enabled the start of ammonia shipments. Throughout this time, we maintained full production and expect significant deliveries in May. We also anticipate achieving our guidance of full year cash distribution of $2.60 per unit.”

Key Stats (on next page)…

Revenue decreased 35.55% from $92.41 million in the previous quarter. EPS decreased 25.49% from $0.51 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 $1.08 to a profit $1.00. For the current year, the average estimate has moved down from a profit of $3.39 to a profit of $2.53 over the last ninety days.

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

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