CF Industries Holdings
The 10-second takeaway
For the quarter ended March 31 (Q1), CF Industries Holdings missed estimates on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share was unchanged. GAAP earnings per share grew significantly.
Margins increased across the board.
CF Industries Holdings reported revenue of $1.34 billion. The 10 analysts polled by S&P Capital IQ wanted to see a top line of $1.44 billion on the same basis. GAAP reported sales were 13% lower than the prior-year quarter's $1.53 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 $6.03. The 17 earnings estimates compiled by S&P Capital IQ averaged $5.92 per share. Non-GAAP EPS of $6.03 for Q1 were 0.5% lower than the prior-year quarter's $6.06 per share. GAAP EPS of $6.47 for Q1 were 17% higher than the prior-year quarter's $5.54 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 50.5%, 390 basis points better than the prior-year quarter. Operating margin was 46.1%, 290 basis points better than the prior-year quarter. Net margin was 30.4%, 630 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.71 billion. On the bottom line, the average EPS estimate is $8.13.
Next year's average estimate for revenue is $5.97 billion. The average EPS estimate is $25.57.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,279 members out of 1,327 rating the stock outperform, and 48 members rating it underperform. Among 245 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 234 give CF Industries Holdings a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CF Industries Holdings is hold, with an average price target of $224.42.
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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.