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Nutrien's (NTR) Q4 Earnings and Revenues Beat Estimates

·4 min read

Nutrien Ltd. NTR recorded profits of $1,207 million or $2.11 per share in fourth-quarter 2021, up from a profit of $316 million or 55 cents in the year-ago quarter.

Barring one-time items, adjusted earnings per share (EPS) were $2.47. The bottom line topped the Zacks Consensus Estimate of $2.30.

Sales climbed around 79% year over year to $7,267 million in the quarter. The figure beat the Zacks Consensus Estimate of $6,428.1 million. The company benefited from higher sales across all the segments, aided by higher selling prices.

Nutrien Ltd. Price, Consensus and EPS Surprise

Nutrien Ltd. Price, Consensus and EPS Surprise
Nutrien Ltd. Price, Consensus and EPS Surprise

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

Segment Highlights

Sales in the Nutrien Ag Solutions segment rose 48% year over year to $3,878 million in the quarter. Sales of crop nutrients increased in the quarter on record sales volumes and higher prices. Sales of crop protection products also increased owing to higher selling prices, market share growth and higher proprietary product sales.

Potash division’s sales surged 216% year over year to $1,420 million driven by higher sales volumes and higher net realized selling prices. Sales volumes in the segment were supported by the company’s actions to boost production to meet strong global demand. Selling prices increased on the back of strong demand and tight supply.

Sales in the Nitrogen segment were $1,456 million, up around 162% year over year. The upside can be attributed to higher net realized selling prices, which offset lower volumes. Sales volume fell due to plant turnaround activities, production outages and lower inventory volumes.

Sales in the Phosphate segment were $532 million, up 90% year over year on the back of higher net realized selling prices and sales volumes. Prices were driven by strong global phosphate demand, tight inventories and increased raw material costs.

2021 Results

Earnings for full-year 2021 were $5.52 per share compared with 81 cents per share a year ago. Revenues rose 33% year over year to $27,712 million for the full year.

Financials

At the end of 2021, Nutrien had cash and cash equivalents of $499 million, down around 66% year over year. Long-term debt was $7,521 million, down roughly 25% year over year.

The company generated $4.3 billion in free cash flow in 2021, up 135% year over year.

Guidance

Nutrien said that the outlook for global agriculture and crop input markets remains strong and it is well positioned to deliver significant growth in earnings and free cash flow this year.

The company expects adjusted EBITDA of $10-$11.2 billion for full-year 2022. Adjusted EPS has been forecast in the band of $10.20-$11.80. Nutrien also sees sustaining capital expenditure of $1.2-$1.3 billion in 2022.

The company also sees record potash sales volumes of between 13.7 million and 14.3 million tons in 2022. Nitrogen sales volumes are projected in the band of 10.8-11.3 million tons for the year.

Price Performance

Nutrien’s shares have gained 34.6% in the past year compared with 24.9% rise of the industry.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Zacks Rank & Other Stocks to Consider

Nutrien carries a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks worth considering in the basic materials space include Commercial Metals Company CMC, Albemarle Corporation ALB and AdvanSix Inc. ASIX.

Commercial Metals, sporting a Zacks Rank #1, has a projected earnings growth rate of 62% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 22.7% upward over the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of roughly 13.1%, on average. CMC has rallied around 59% in a year.

Albemarle, carrying a Zacks Rank #1, has an expected earnings growth rate of 56.2% for the current year. ALB's consensus estimate for the current year has been revised 7.4% upward over the past 60 days.

Albemarle beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 22.1%. ALB shares have gained around 43% in a year.

AdvanSix, carrying a Zacks Rank #2 (Buy), has an expected earnings growth rate of 7.4% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 3.2% upward in the last 60 days.

AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied around 51% in a year.


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