CF Industries Holdings
The 10-second takeaway
For the quarter ended June 30 (Q2), CF Industries Holdings missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share increased significantly.
Margins grew across the board.
CF Industries Holdings reported revenue of $1.74 billion. The 12 analysts polled by S&P Capital IQ predicted a top line of $1.92 billion on the same basis. GAAP reported sales were 3.7% lower than the prior-year quarter's $1.80 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $8.71. The 14 earnings estimates compiled by S&P Capital IQ forecast $8.66 per share. GAAP EPS of $9.31 for Q2 were 38% higher than the prior-year quarter's $6.75 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 60.1%, 1,200 basis points better than the prior-year quarter. Operating margin was 57.1%, 1,080 basis points better than the prior-year quarter. Net margin was 34.9%, 780 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.39 billion. On the bottom line, the average EPS estimate is $5.23.
Next year's average estimate for revenue is $6.32 billion. The average EPS estimate is $25.43.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,230 members out of 1,278 rating the stock outperform, and 48 members rating it underperform. Among 244 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 234 give CF Industries Holdings a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CF Industries Holdings is outperform, with an average price target of $210.48.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of CF Industries Holdings. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.