What to Expect from CF Industries Holdings

Seth Jayson, The Motley Fool
Updated

CF Industries Holdings (NYS: CF) is expected to report Q3 earnings on Nov. 5. Here's what Wall Street wants to see:

The 10-second takeaway
 Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict CF Industries Holdings's revenues will shrink -3.4% and EPS will increase 12.4%.

The average estimate for revenue is $1.36 billion. On the bottom line, the average EPS estimate is $5.80.


Revenue details
 Last quarter, CF Industries Holdings recorded revenue of $1.74 billion. GAAP reported sales were 3.7% lower than the prior-year quarter's $1.80 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 Last quarter, non-GAAP EPS came in at $8.71. GAAP EPS of $9.31 for Q2 were 38% higher than the prior-year quarter's $6.75 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
 For the preceding quarter, gross margin was 60.1%, 1,200 basis points better than the prior-year quarter. Operating margin was 57.1%, 1,080 basis points better than the prior-year quarter. Net margin was 34.9%, 780 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $6.18 billion. The average EPS estimate is $27.10.

Investor sentiment
 The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,224 members out of 1,271 rating the stock outperform, and 47 members rating it underperform. Among 250 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 241 give CF Industries Holdings a green thumbs-up, and nine give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CF Industries Holdings is outperform, with an average price target of $210.48.

The article What to Expect from CF Industries Holdings originally appeared on Fool.com.

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 ofMotley 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.

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