With a market cap of $15.3 billion, Northbrook, Illinois-based CF Industries Holdings, Inc. (CF) operates in the chemicals sector and specializes in nitrogen-based products. It manufactures and distributes nitrogen fertilizers and other industrial nitrogen products, serving markets across North America, Europe, and internationally. The company is expected to release its fiscal Q3 earnings results after the market closes on Wednesday, Oct. 30.
Ahead of this event, analysts expect the fertilizer maker to report a profit of $1.05 per share, up 23.5% from $0.85 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in one of the last four quarters while missing on three other occasions. CF exceeded the consensus EPS estimate by 27.8% in the most recent quarter.
For fiscal 2024, analysts expect CF to report EPS of $5.86, down 27% from $8.03 in fiscal 2023.
CF Industries has risen 4.5% over the past 52 weeks, significantly underperforming both the S&P 500 Index's ($SPX) 38.5% gain and the Materials Select Sector SPDR Fund's (XLB) 27.5% increase over the same period.
Despite missing Q2 revenue estimates on Aug. 7, CF Industries' shares surged 8.5% the following day due to better-than-expected earnings per share of $2.30. The company's positive outlook on global nitrogen prices, driven by gas curtailments in Egypt and Trinidad and reduced urea exports from China, reassured investors of a tighter supply-demand balance. Additionally, lower natural gas costs boosted margins, adding to the favorable market reaction.
Overall, analysts' consensus view on CF Industries stock is cautiously optimistic, with a "Moderate Buy" rating. Out of 14 analysts covering the stock, four recommend a "Strong Buy," one suggests a "Moderate Buy," eight give a "Hold" rating, and one proposes a "Strong Sell" rating. This configuration has remained steady over the past three months. The average analyst price target for CF is $86.30, suggesting a modest potential upside of only 2.9% from the current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
