CF Industries (NYSE:CF) Posts Earnings Results, Misses Estimates By $0.90 EPS

Key Points

• CF Industries missed quarterly earnings and revenue estimates: It reported $4.73 in EPS versus the $5.63 consensus and revenue of $2.22 billion versus expectations of $2.45 billion. Revenue still increased 17.6% year over year.
• The stock fell following the results, trading down $2.23 to $115.88, while analysts maintained a consensus “Hold” rating with an average price target of $116.69.
• CF Industries raised its quarterly dividend to $0.60 per share from $0.50, equivalent to an annualized $2.40 payout and a 2.1% yield.

CF Industries (NYSE:CF - Get Free Report) released its earnings results on Wednesday. The basic materials company reported $4.73 earnings per share for the quarter, missing analysts' consensus estimates of $5.63 by ($0.90), FiscalAI reports. The firm had revenue of $2.22 billion for the quarter, compared to analysts' expectations of $2.45 billion. CF Industries had a return on equity of 20.93% and a net margin of 23.73%.The firm's quarterly revenue was up 17.6% on a year-over-year basis. During the same quarter in the previous year, the company posted $2.37 earnings per share.

CF Industries Stock Performance

NYSE:CF traded down $2.23 during mid-day trading on Wednesday, reaching $115.88. 2,681,600 shares of the stock were exchanged, compared to its average volume of 2,227,945. The stock has a market capitalization of $17.80 billion, a P/E ratio of 10.41 and a beta of 0.39. CF Industries has a 1 year low of $75.42 and a 1 year high of $141.96. The company has a 50 day simple moving average of $114.16 and a 200-day simple moving average of $113.39. The company has a quick ratio of 3.15, a current ratio of 3.54 and a debt-to-equity ratio of 0.39.

CF Industries Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, August 31st. Investors of record on Friday, August 14th will be paid a dividend of $0.60 per share. The ex-dividend date is Friday, August 14th. This represents a $2.40 dividend on an annualized basis and a yield of 2.1%. This is a boost from CF Industries's previous quarterly dividend of $0.50. CF Industries's dividend payout ratio (DPR) is 17.97%.

Institutional Investors Weigh In On CF Industries

Several large investors have recently modified their holdings of the company. nVerses Capital LLC purchased a new stake in CF Industries in the 4th quarter valued at $219,000. Index Technologies Group LLC purchased a new position in CF Industries during the 4th quarter worth $217,000. Fieldview Capital Management LLC acquired a new position in CF Industries in the fourth quarter valued at $208,000. Tocqueville Asset Management L.P. increased its stake in CF Industries by 6.0% in the fourth quarter. Tocqueville Asset Management L.P. now owns 2,647 shares of the basic materials company's stock valued at $205,000 after purchasing an additional 149 shares during the period. Finally, Lido Advisors LLC acquired a new stake in shares of CF Industries during the third quarter worth about $204,000. 93.06% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on the stock. Zacks Research downgraded shares of CF Industries from a "strong-buy" rating to a "hold" rating in a research report on Monday, June 15th. HSBC dropped their target price on CF Industries from $130.00 to $121.00 in a report on Wednesday, June 17th. Bank of America lifted their price target on CF Industries from $103.00 to $106.00 in a report on Thursday, May 14th. Morgan Stanley lowered their price objective on CF Industries from $135.00 to $115.00 and set an "equal weight" rating for the company in a research report on Tuesday, July 7th. Finally, BNP Paribas Exane lowered their price target on CF Industries from $140.00 to $120.00 and set a "neutral" rating for the company in a report on Monday, June 15th. Two analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, ten have assigned a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $116.69.

About CF Industries

CF Industries Holdings, Inc is a leading global manufacturer of hydrogen and nitrogen products for agricultural and industrial customers. The company specializes in the production of ammonia, granular urea, urea ammonium nitrate (UAN), nitric acid and ammonium nitrate, which serve as key inputs for fertilizer blends, industrial chemicals and other downstream applications.

Headquartered in Deerfield, Illinois, CF Industries operates production facilities and distribution terminals across North America and the United Kingdom.

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