CF Industries Holdings
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), CF Industries Holdings met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share grew significantly.
Margins increased across the board.
CF Industries Holdings notched revenue of $1.36 billion. The 13 analysts polled by S&P Capital IQ anticipated revenue of $1.35 billion on the same basis. GAAP reported sales were 3.2% lower than the prior-year quarter's $1.40 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 $5.85. The 18 earnings estimates compiled by S&P Capital IQ predicted $5.71 per share. GAAP EPS of $6.35 for Q3 were 34% higher than the prior-year quarter's $4.73 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 51.6%, 620 basis points better than the prior-year quarter. Operating margin was 48.3%, 520 basis points better than the prior-year quarter. Net margin was 29.7%, 610 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.55 billion. On the bottom line, the average EPS estimate is $6.70.
Next year's average estimate for revenue is $6.18 billion. The average EPS estimate is $27.09.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,227 members out of 1,274 rating the stock outperform, and 47 members rating it underperform. Among 254 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 245 give CF Industries Holdings a green thumbs-up, and nine 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 $232.61.
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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.