Anticipated Analysis of CF Industries' Earnings: Predictions and Insights
Prepare to dive into the financial realm as we dissect the performance of CF Industries Holdings, Inc., a Northbrook, Illinois-based titan in the hydrogen and nitrogen product market. With a whopping market cap of $13.1 billion, this agricultural inputs powerhouse churns out diesel exhaust fluid, urea liquor, nitric acid, and aqua ammonia, among other goodies. Gear up for their Q1 earnings announcement on May 7, 2025.
Analysts predict that this industry heavyweight will post a grand profit of $1.47 per share for Q1 2025, marking a substantial 42.7% increase from $1.03 per share in the same quarter a year ago. While the company has demonstrated a knack for outperforming Wall Street's earnings estimates in three out of the last four quarters, it's also had its misses. For instance, in Q4 2024, it managed to eclipse expectations by a whopping 26.9%, with EPS of $1.89.
Curious about the long-term forecast? Analysts expect the company to report a profit of $5.97 per share for fiscal 2025, a 11.4% drop from $6.74 in fiscal 2024. Fast forward to fiscal 2026, and the EPS is expected to further slide by 3% year over year to $5.79.
Over the past 52 weeks, CF Industries has lagged behind the S&P 500 Index's impressive 8.2% gain, with shares dipping 2.5% over the same period. However, it's still managed to outshine the Materials Select Sector SPDR Fund's 5.8% fall over the same span.
On February 19, CF released its Q4 results. Despite delivering a better-than-expected performance, shares took a dip, shedding 4.2% in the following trading session. Its revenue slid 3% from the year-ago quarter to $1.5 billion but exceeded Wall Street's expectations by 3.4%. Meanwhile, its net earnings rocketed 31.3% year-over-year to $1.89 per share, handily surpassing consensus estimates. Improved gross margin and the cost-advantaged North American-based production network largely supported the robust bottom-line growth. However, a decline in revenue across most reportable segments, lower sales volumes, and a 12.5% drop in cash from operating activities might have left some investors feeling wary, causing the stock's decline.
Analysts remain moderately optimistic about CF's stock, with an overall "Moderate Buy" rating. Among 17 analysts covering the stock, five recommend a "Strong Buy," 11 indicate "Hold," and one suggests a "Strong Sell" rating. The mean price target for CF is $87.44, indicating a 13.1% potential upside from the present levels.
Stay tuned for more insights on this captivating company as they reveal their Q1 earnings on May 7, 2025. Don't miss the chance to get behind-the-scenes access to the latest financial news with our Active Investor newsletter.
As of the date of publication, Neharika Jain does not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view our Disclosure Policy here.
Enrichment Data:- The predicted Q1 2025 EPS for CF Industries Holdings Inc. is approximately $1.47 per share, with a range of roughly $1.41 to $1.48.- Fiscal year 2025 is expected to see a profit of about $5.97 per share, down approximately 11.4% from 2024 levels.- By 2026, EPS is anticipated to decline further to around $5.79 per share.
These estimates suggest robust Q1 performance, but a moderated decrease in overall profitability expected for the full fiscal year 2025 compared to 2024.
- The anticipated Q1 2025 earnings per share (EPS) for CF Industries Holdings Inc. is approximately $1.47, potentially marking a 42.7% increase from the same quarter last year.
- Analysts predict that the company will report a profit of $5.97 per share for fiscal 2025, a 11.4% drop from $6.74 in fiscal 2024.
- Despite the expected drop in overall profitability for fiscal 2025, analysts remain moderately optimistic about CF Industries' stock, with an overall "Moderate Buy" rating.
- The mean price target for CF Industries is $87.44, indicating a 13.1% potential upside from the present levels.
- As a personal finance investor, keeping tabs on CF Industries' business performance and technology initiatives could prove valuable, considering their role in the hydrogen and nitrogen product market.
