CF Industries (CF) Posts Mixed Q1 Results; Offers Outlook

CF Industries (NYSE: CF) reported Q1 EPS of $0.40, $0.05 worse than the analyst estimate of $0.45. Revenue for the quarter came in at $1 billion versus the consensus estimate of $837.61 million.

Outlook

The outlook for the remainder of 2016 and into 2017 remains positive for the business, particularly given the company's growth profile as the new capacity expansion projects come on line. However, with new capacity coming on line globally over the next 12 months, including that from CF, the company expects that nitrogen prices will remain under pressure. The company expects urea demand at the U.S. Gulf to continue to be relatively firm through the application season.

Anticipated returns to U.S. farmers continue to support planting corn over soybeans. The company's planted corn area forecast is 92 million acres, with possible upside given the favorable USDA survey for spring planting intentions. The company forecasts corn use growth above 2 percent for fertilizer year 2016/2017, with demand expected to rebound to near 2014 levels, evidenced by December corn currently trading near $3.90 per bushel. All of these signs point to a positive outlook for the farmer and strong demand for the company's products.

For earnings history and earnings-related data on CF Industries (CF) click here.

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