Saturday, January 4, 2014

Will CF Industries Holdings Beat These Analyst Estimates?

CF Industries Holdings (NYSE: CF  ) is expected to report Q1 earnings on May 8. 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 wither -5.9% and EPS will contract -2.3%.

The average estimate for revenue is $1.44 billion. On the bottom line, the average EPS estimate is $5.92.

Revenue details
Last quarter, CF Industries Holdings booked revenue of $1.48 billion. GAAP reported sales were 14% lower than the prior-year quarter's $1.72 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 $7.27. GAAP EPS of $7.43 for Q4 were 12% higher than the prior-year quarter's $6.65 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 44.3%, 600 basis points worse than the prior-year quarter. Operating margin was 41.5%, 680 basis points worse than the prior-year quarter. Net margin was 31.8%, 630 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $5.97 billion. The average EPS estimate is $25.57.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,276 members out of 1,323 rating the stock outperform, and 47 members rating it underperform. Among 243 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 232 give CF Industries Holdings a green thumbs-up, and 11 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CF Industries Holdings is hold, with an average price target of $232.57.

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Add CF Industries Holdings to My Watchlist.

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