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Nutrien (NTR) to Report Q1 Earnings: What's in the Cards?

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Nutrien Ltd. NTR is set to release first-quarter 2022 results on May 2, after the closing bell.

The fertilizer maker delivered an earnings surprise of 60.3% on average, over the trailing four quarters. It posted an earnings surprise of 7.4% in the last reported quarter. The company’s first-quarter results are likely to reflect the benefits of strong demand and higher prices for fertilizers.

The company’s shares have gained 79.4% in the past year compared with the industry’s 50.6% rise.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research


Let’s see how things are shaping up for this announcement.

Zacks Model

Our proven model predicts an earnings beat for Nutrien this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat.

Earnings ESP: Earnings ESP for Nutrien is +0.55%. The Zacks Consensus Estimate for the first quarter is currently pegged at $2.59. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Nutrien currently carries a Zacks Rank #1.

What do the Estimates Indicate?

The Zacks Consensus Estimate for Nutrien’s first-quarter consolidated sales is currently pegged at $7,767 million, which calls for a rise of 66.7% from the year-ago quarter’s tally.

The Zacks Consensus Estimate for net sales in the Nutrien Ag Solutions segment stands at $3,872 million, roughly stable on a sequential comparison basis.

The Zacks Consensus Estimate for net sales in the Phosphates segment is currently pegged at $660 million, which calls for a rise of 1.4% on a sequential comparison basis.

The consensus mark for net sales in the Potash segment is currently pegged at $1,920 million, suggesting a sequential rise of 29.2%.

The consensus mark for net sales in the Nitrogen segment is currently pegged at $1,819 million, indicating a sequential rise of 10.3%.

A Few Factors to Watch

The company’s first-quarter results are likely to have benefited from solid demand and higher prices for fertilizers, aided by the underlying strength in global agriculture markets. It is expected to have gained from strong potash sales volumes on the back of high domestic and overseas demand and its actions to boost production to meet strong global demand. Nutrien is also likely to have gained from acquisitions, cost efficiency and increased adoption of its digital platform.

Global phosphate markets remain robust on solid demand and pricing dynamics. Potash prices have strengthened on the back of robust global demand, aided by strong grower economics, higher crop prices, and low global inventory levels. Tight availability and firm demand are also contributing to phosphate prices globally.

Demand for nitrogen fertilizer also remains healthy in major markets. Global nitrogen requirement is being driven by demand in North America, India and Brazil. Lower global supply availability stemming from reduced operating rates and a spike in energy prices are likely to have boosted nitrogen prices in the quarter to be reported. Higher prices are expected to have driven the company’s sales and margins in the March quarter.

Nutrien Ltd. Price and EPS Surprise

Nutrien Ltd. Price and EPS Surprise
Nutrien Ltd. Price and EPS Surprise

Nutrien Ltd. price-eps-surprise | Nutrien Ltd. Quote

Stocks That Warrant a Look

Here are some companies in the basic materials space you may want to consider as our model shows these too have the right combination of elements to post an earnings beat this quarter:

The Mosaic Company MOS, scheduled to release earnings on May 2, has an Earnings ESP of +0.89% and carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Mosaic’s first-quarter earnings has been revised 14.6% upward over the past 60 days. The Zacks Consensus Estimate for MOS’s earnings for the quarter is currently pegged at $2.44.

Westlake Corporation WLK, slated to release earnings on May 3, has an Earnings ESP of +17.30% and carries a Zacks Rank #1.

The Zacks Consensus Estimate for Westlake's first-quarter earnings has been revised 22.1% upward over the past 60 days. The consensus estimate for WLK’s earnings for the quarter is currently pegged at $4.53.

The Chemours Company CC, scheduled to release earnings on May 2, has an Earnings ESP of +3.83% and carries a Zacks Rank #3.

The Zacks Consensus Estimate for Chemours’ first-quarter earnings has been revised 2.2% upward in the past 60 days. The consensus estimate for CC’s earnings for the quarter is currently pegged at 92 cents.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Westlake Corp. (WLK) : Free Stock Analysis Report

The Mosaic Company (MOS) : Free Stock Analysis Report

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Nutrien Ltd. (NTR) : Free Stock Analysis Report

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