CF Industries Q3 Earnings and Sales Beat on Higher Selling Prices
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CF Industries Holdings, Inc. CF reported third-quarter 2024 earnings of $1.55 per share, up from 85 cents in the year-ago quarter. The figure surpassed the Zacks Consensus Estimate of $1.05.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Net sales rose around 8% year over year to $1,370 million in the quarter, beating the Zacks Consensus Estimate of $1,213.9 million.
Average selling prices in the third quarter were higher year over year due to increased average selling prices for ammonia from lower global supply availability partly resulting from lower natural gas availability in Trinidad and Egypt. Sales volumes were flat year over year as higher ammonia sales volumes were offset by lower Urea Ammonium Nitrate (UAN) sales volumes.
CF Industries Holdings, Inc. Price, Consensus and EPS Surprise
CF Industries Holdings, Inc. price-consensus-eps-surprise-chart | CF Industries Holdings, Inc. Quote
CF’s Segment Highlights
Net sales in the Ammonia segment climbed 50% year over year to $353 million in the reported quarter, beating our estimate of $219.5 million. Ammonia adjusted gross margin per ton fell in the first nine months of 2024 from the same period in 2023, mostly due to lower average selling prices and increased maintenance expenses, which were slightly offset by lower realized natural gas costs.
Sales in the Granular Urea segment increased around 8% year over year to $388 million, topping our estimate of $326.8 million. Granular urea adjusted gross margin per ton declined in the first nine months of 2024 from the same period in 2023, owing to lower average selling prices and the impact of purchased volumes of granular urea to satisfy customer commitments, which was somewhat offset by reduced realized natural gas costs.
Sales in the UAN segment fell around 7% year over year to $406 million. It was above our estimate of $379.7 million. UAN adjusted gross margin per ton declined in the in the first nine months of 2024 from the same period in 2023, mainly due to lower average selling prices offset by reduced realized natural gas costs.
Sales in the AN segment fell around 7% year over year to $106 million. It was above our estimate of $91.7 million. AN adjusted gross margin per ton declined in first nine months of 2024 from the same period in 2023, owing to lower average selling prices, which were partly offset by lower maintenance and realized natural gas costs.
CF’s Financials
As of Sept. 30, 2024, CF Industries’ cash and cash equivalents were $1,877 million, up 3% sequentially. Long-term debt was $2,970 million, stable sequentially.
The company repurchased 6.1 million shares for $476 million in the reported quarter.
