mosaic ((((MOS) And fellow fertilizer makers Nutrien ((((NTR) Results within the first quarter have been combined. However, whereas Mosaic expects provide chain issues to proceed within the second quarter, Nutrien has considerably raised its full-year revenue forecast. From each main ranges, MOS shares have turned increased, however NTR shares have additionally skyrocketed.
Nitrogen fertilizer producer CF Industries ((((CF) There is a revenue on the finish of Wednesday.
All 4 shares Chemicals-Agricultural Industry Group It ranks second among the many 197 IBD business teams primarily based on worth efficiency and momentum. The group was already in large-scale execution when Russia’s invasion of Ukraine triggered what appeared like a robust rally.
Many forces have contributed to the rise in fertilizer costs, together with export restrictions from Russia, Belarus and Ukraine. Soaring pure fuel costs, uncooked supplies for nitrogen-based fertilizers, and US tariffs on Moroccan provides are additionally contributing.
Currently, fertilizer inventories have fallen by about 15% to twenty% from their peak, in search of help on a 50-day shifting common. A robust break supplies a sign to promote. However, bounces could supply new buy alternatives.
So far, many analysts are sticking to the group as a result of they suppose it has the potential for a long-term earnings growth.
On Monday, Mizuho analyst Christopher Parkinson made important worth will increase for MOS shares (59-89), NTR (94-124), CF (81-120) and FMC (136-155). Parkinson gave the impression of a “multi-year bullish name,” however he maintained a impartial status whereas searching for a extra engaging entry.
March 7, CF IBD stock todayPiper Sandler analyst Charles Neybert defined his bullish outlook.
Despite the uncommon succession of 5 years of nice harvests, international meals insecurity is rising, he mentioned. “We are working like hell simply to remain there.”
But decrease yields and the inevitability of inventories recommend that corn costs proceed to rise even after the battle between Russia and Ukraine recedes, he says.
Estimate: Analysts anticipated Mosaic’s earnings per share to rise by greater than 400% to $ 2.40. Revenue elevated 78% to $ 4.08 billion.
end result: Mosaic income elevated 323% to $ 2.41 per share. Revenues have been up 71% to $ 3.92 billion, which was decrease than anticipated as shipments declined.
MOS shares initially fell, however rose 5.7% to 64.92, above the 50-day shifting common after barely beneath their key ranges within the earlier two periods. The firm did not present particular EPS steerage, however mentioned provide chain points have been “simply starting to say no.”
Still, Mosaic mentioned it expects phosphate gross sales within the second quarter to be 1.9 million to 2.1 million tonnes, in comparison with 1.7 million tonnes within the first quarter. Cali gross sales ought to improve from 2.4 million to 2.6 million tonnes, in comparison with 1.8 million tonnes within the first quarter.
Estimate: Nutrien’s income elevated 850% to $ 2.76 per share and income elevated 64% to $ 7.62 billion.
end result: Nutrien’s income surged 831% to $ 2.70 per share and income elevated 64% to $ 7.66 billion.
Outlook: Nutrien has raised its full-year EPS steerage from $ 16.20 to $ 18.70. This is forward of the earlier steerage of $ 10.20 to $ 11.80 to a consensus view of simply over $ 15. It cited increased promoting costs, elevated potash volumes, and better gross income on retail crop vitamins and crop safety merchandise. EPS steerage additionally considers a minimum of $ 2 billion in repurchases of NTR shares.
NTR shares rose 5% throughout the day on Tuesday to 104.18, off the fiftieth line. Shares on Monday rose 1% to 99.21.
Estimate: The FMC was anticipated to generate $ 1.29 billion in income progress of seven.5% and an EPS of $ 1.71, up 12%.
end result: EPS surged 23% to $ 1.88. Revenue elevated 13% to $ 1.35 billion.
The FMC adhered to the full-year income progress steerage vary, on the midpoint between $ 5.25 billion and $ 5.55 billion. However, FMC adjusted the EPS steerage vary from $ 6.70 to $ 8, dropping 10 cents at each ends.
The firm quoted value inflation, provide turmoil, international forex changes, and the choice to droop operations in Russia.
FMC shares fell 7.2% to 122.25. On Monday, shares bounced again on the 50-day line.
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