CF Industries Reports Q3 Earnings, Analysts Adjust Ratings
CF Industries Holdings, Inc. (CF), based in Northbrook, Illinois, continues to be a major player in the hydrogen and nitrogen markets, focusing on energy, fertilizers, emissions reduction, and various industrial applications. With a market cap of $15.2 billion, the company aims to supply clean energy solutions for sustainable food and fuel production.
Stock Performance Lags Behind Market Trends
Over the past year, CF’s stock has struggled compared to the overall market. The company’s shares have increased by only 16.8%, in contrast to the S&P 500 Index ($SPX), which has enjoyed a rise of nearly 30.1%. A review of 2024 reveals a similar trend: CF’s stock rose 13.1% year-to-date, while the SPX climbed 24.1% in that same period.
Comparative Performance Against Industry ETF
When analyzing performance against the iShares U.S. Basic Materials ETF (IYM), CF shows a slight uptrend. The ETF has gained about 12.3% over the last year, but CF’s double-digit returns year-to-date surpass the ETF’s 4.7% increase within the equivalent timeframe.
Q3 Earnings Report Exceeds Expectations
CF’s shares saw a modest uptick following the announcement of its Q3 earnings on October 30. The company posted earnings per share (EPS) of $1.55, beating Wall Street’s expectations of $1.05. Revenue for the quarter reached $1.4 billion, exceeding the anticipated $1.2 billion.
Future Earnings Outlook and Analyst Consensus
Looking ahead, analysts predict a 21.3% decline in CF’s EPS for the current fiscal year, ending in December, bringing it down to $6.32 on a diluted basis. CF has a mixed history of earning surprises, having beaten consensus estimates in two of the last four quarters while falling short on two occasions.
The consensus rating among the 14 analysts tracking CF remains a “Moderate Buy.” This is based on four “Strong Buy” ratings, one “Moderate Buy,” seven “Holds,” one “Moderate Sell,” and one “Strong Sell.” However, this is a decline from two months ago, when five analysts rated it a “Strong Buy.”
Analyst Price Targets Point to Potential Gains
On November 14, Barclays PLC (BCS) analyst Benjamin Theurer reaffirmed a “Buy” rating for CF and set a price target of $96. This target indicates a potential upside of 6.8% from its current trading levels. Despite already trading above its average price target of $87.57, the highest target from analysts, at $105, suggests an upside potential of 16.8%.
On the date of publication, Neha Panjwani did not hold any positions, directly or indirectly, in any of the securities mentioned in this article. All information and data in this article are provided for informational purposes only. For further details, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
