CF Industries Holdings, Inc. (CF) is expected to benefit from healthy nitrogen fertilizer demand in major markets and lower natural gas costs amid headwinds from lower nitrogen prices.The company’s shares have lost 7.2% over a year compared with the 32.9% decline of its industry.Let’s find out why this Zacks Rank #3 (Hold) stock is worth retaining at the moment. Image Source: Zacks Investment Research Healthy Nitrogen Demand Bodes WellCF Industries is gaining from rising global demand for nitrogen fertilize ...

Subscribers to Schaeffer's Weekend Trader options recommendation service received this CF commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.CF Industries Holdings, Inc. (NYSE:CF) stock’s lower rail held its connecting May and January lows, as a confluence of its 20-, 50-, and 200-day moving averages provided support. The shares are now above th ...

Financial Performance - Net sales decreased by $4.56 billion, or 41%, to $6.63 billion in 2023 compared to $11.19 billion in 2022, primarily due to a 43% decrease in average selling prices [271]. - Net sales for the year ended December 31, 2023, were $6.631 billion, a decrease of 40.5% compared to $11.186 billion in 2022 [428]. - Net earnings for 2023 were $1,525 million, compared to $1,260 million in 2022, an increase of 21% [436]. - Net earnings attributable to common stockholders for 2023 were $1.525 billion, a decrease of 54.5% from $3.346 billion in 2022 [428]. - Comprehensive income for 2023 was $1.859 billion, compared to $3.964 billion in 2022, reflecting a decrease of 53.0% [431]. - The company reported a basic net earnings per share of $7.89 for 2023, down from $16.45 in 2022, representing a decline of 52.0% [428]. Sales and Pricing - Average selling price was $347 per ton in 2023, down 43% from $610 per ton in 2022, resulting in a decrease in net sales of approximately $4.98 billion [272]. - Sales volume increased by 4% to 19.1 million product tons in 2023, up from 18.3 million product tons in 2022, driven by higher sales in UAN, Ammonia, and Other segments [273]. - Net sales in the Ammonia segment decreased by $1.41 billion, or 46%, to $1.68 billion in 2023 from $3.09 billion in 2022, primarily due to a 49% decrease in average selling prices [306]. - Net sales in the Granular Urea segment decreased by $1.07 billion, or 37%, to $1.82 billion in 2023 compared to $2.89 billion in 2022, driven by a 37% decrease in average selling prices [310]. - Net sales in the UAN segment decreased by $1.50 billion, or 42%, to $2.07 billion in 2023 from $3.57 billion in 2022, primarily due to a 46% decrease in average selling prices [315]. - Average selling prices in the UAN segment decreased to $286 per ton in 2023 from $526 per ton in 2022, driven by lower global energy costs and increased imports of Russian UAN [315]. Cost of Sales - Cost of sales decreased by $1.24 billion, or 23%, to $4.09 billion in 2023, influenced by lower natural gas costs and the impact of the Waggaman acquisition [276]. - Cost of sales averaged $214 per ton in 2023, a 26% decrease from $290 per ton in 2022, with natural gas costs decreasing 49% to $3.67 per MMBtu [277]. - Cost of sales in the Ammonia segment averaged $320 per ton in 2023, a 29% decrease from $451 per ton in 2022, primarily due to lower realized natural gas costs [307]. - Cost of sales in the Granular Urea segment averaged $221 per ton in 2023, a 24% decrease from $291 per ton in 2022, attributed to lower realized natural gas costs [311]. - Cost of sales in the Other segment averaged $149 per ton in 2023, a 26% decrease from $202 per ton in 2022, due to lower production costs [325]. Gross Margin - Gross margin for 2023 was $2.545 billion, down from $5.861 billion in 2022, reflecting a decline of 56.6% [428]. - Gross margin in the Ammonia segment decreased by $1.06 billion to $541 million in 2023 from $1.60 billion in 2022, with a gross margin percentage of 32.2% compared to 51.7% in 2022 [308]. - Gross margin in the Granular Urea segment decreased by $751 million to $813 million in 2023 from $1.56 billion in 2022, with a gross margin percentage of 44.6% in 2023 compared to 54.1% in 2022 [312]. - Gross margin in the UAN segment decreased by $1.27 billion to $817 million in 2023 from $2.08 billion in 2022, with a gross margin percentage of 39.5% in 2023 compared to 58.3% in 2022 [317]. - Gross margin in the AN segment decreased by $110 million to $138 million in 2023 from $248 million in 2022, with a gross margin percentage of 27.8% in 2023 compared to 29.3% in 2022 [321]. - Gross margin in the Other segment decreased by $131 million to $236 million in 2023 from $367 million in 2022, with a gross margin percentage of 41.8% in 2023 compared to 46.6% in 2022 [322]. Expenses and Interest - Selling, general and administrative expenses were $289 million in 2023, slightly down from $290 million in 2022, primarily due to nonrecurring charitable contributions [279]. - Interest expense decreased by $194 million to $150 million in 2023, largely due to the absence of tax-related interest expense recorded in 2022 [290]. - Interest income increased by $93 million to $158 million in 2023, reflecting higher interest rates on short-term investments [292]. Cash Flow and Investments - Net cash provided by operating activities in 2023 was $2.76 billion, a decrease of $1.10 billion from $3.86 billion in 2022, primarily due to lower net earnings of $1.84 billion compared to $3.94 billion in 2022 [378]. - Net cash used in investing activities increased to $1.68 billion in 2023 from $440 million in 2022, largely due to the $1.223 billion paid for the Waggaman acquisition [379]. - Net cash used in financing activities decreased to $1.37 billion in 2023 from $2.70 billion in 2022, attributed to reduced share repurchases of $580 million compared to $1.35 billion in 2022 [380]. Acquisitions and Capital Expenditures - The company acquired an ammonia production facility in Waggaman, Louisiana, for $1.675 billion, with a nameplate capacity of 880,000 tons of ammonia annually [335]. - The acquisition included a long-term ammonia offtake agreement to supply up to 200,000 tons of ammonia per year to Dyno Nobel, Inc. [336]. - Capital expenditures in 2023 totaled $499 million, up from $453 million in 2022, with estimates for 2024 ranging from $550 million [333][334]. Debt and Equity - Total long-term debt as of December 31, 2023, was $3,000 million, with an effective interest rate of 5.293% for the 5.150% notes due March 2034 [355]. - The company had approximately $291 million of letters of credit outstanding under a bilateral agreement as of December 31, 2023, reflecting an increase of $75 million [354]. - Stockholders' equity increased to $5,717 million in 2023, up from $5,051 million in 2022, marking a growth of 13% [434]. Future Outlook and Strategic Initiatives - The company aims to decarbonize its ammonia production network to enable green and low-carbon hydrogen and nitrogen products, aligning with its mission for sustainable energy [440]. - The company plans to permanently close the ammonia plant at its Billingham complex, which has impacted production and sales strategies [319].

Investment Rating - The report indicates a positive market reaction to CF Industries' performance, with an expected revenue of $1.571 billion for Q4 2023, exceeding consensus estimates of $1.501 billion [2]. Core Insights - CF Industries' ammonia business drove better-than-expected performance, with adjusted gross profit of $216 million, despite a 52% year-over-year decline due to a 50% drop in average selling prices [2][3]. - The company raised its quarterly dividend by 25% to $0.50 per share and has $2.6 billion remaining in its $3 billion share repurchase program, expected to be completed by December 2025 [2]. - Capital expenditure guidance for FY2024 is set at $550 million, slightly above market expectations of $567 million, with a final investment decision on its low-carbon ammonia project anticipated in FY2024 [2]. Summary by Sections Financial Performance - CF Industries reported Q4 2023 revenue of $1.571 billion, a 23% increase quarter-over-quarter but a 40% decrease year-over-year [3]. - Capital expenditures for the quarter were $188 million, aligning with the company's FY2023 guidance of $450 million to $500 million [2]. - Cash and cash equivalents decreased by 38% to $2.032 billion compared to Q3 2023 [3]. Ammonia Business - The ammonia segment achieved revenue of $496 million, a 111% increase from Q3 2023, but a 38% decrease year-over-year [3]. - Adjusted gross profit for the ammonia business was $216 million, down 52% year-over-year, primarily due to lower average selling prices [2][3]. Urea and Other Segments - Granular urea business reported adjusted gross profit of $233 million, a 38% decline year-over-year, with average selling prices down 35% [2][3]. - The urea ammonium nitrate segment's adjusted gross profit was $185 million, down 66% year-over-year, attributed to a 54% drop in average selling prices [2][3]. - The ammonium nitrate segment reported adjusted gross profit of $38 million, also reflecting a 52% year-over-year decline [2][3].

NORTHBROOK, Ill.--(BUSINESS WIRE)--CF Industries Holdings, Inc. (NYSE: CF) today announced that the Company will present at the following upcoming investor conferences: Citi’s 2024 Global Industrial Tech and Mobility Conference at 11:20 am ET on Wednesday, February 21, 2024. Barclays Industrial Select Conference at 8:00 am ET on Thursday, February 22, 2024. BofA Global Agriculture and Materials Conference 2024 at 9:50 am ET on Thursday, February 29, 2024. Investors who wish to access the live confer ...

CF Industries Holdings, Inc. (NYSE:CF) Q4 2023 Earnings Conference Call February 15, 2024 10:00 AM ET Company Participants Martin Jarosick - IR Tony Will - CEO Chris Bohn - EVP and COO Bert Frost - EVP, Sales, Market Development and Supply Chain Conference Call Participants Adam Samuelson - Goldman Sachs Joel Jackson - BMO Capital Markets Steve Byrne - Bank of America Josh Spector - UBS Jeff Zekauskas - JPMorgan Richard Garchitorena - Wells Fargo Edlain Rodriguez - Mizuho Ben Theurer - Barclays Andrew Wong ...

Tuesday’s U.S. Consumer Price Index (CPI) inflation report showed inflation rising faster than expected in January. The cost of housing increased by 0.6%, indicating underlying inflation pressures remain strong. Investors had been pricing the Federal Reserve (Fed) to cut interest rates in May, but that has been postponed to June following the release. The hawkish inflation figures saw the Dow Jones Industrial Average (DJIA) recording its worst day since March 2023 and the Russell 2000 shedding 4%. That happ ...

CF Industries Holdings, Inc. (CF) logged fourth-quarter 2023 earnings of $1.44 per share, down from $4.35 in the year-ago quarter.Barring one-time items, earnings came in at $1.49 per share for the reported quarter. The figure missed the Zacks Consensus Estimate of $1.56.Net sales fell around 40% year over year to $1,571 million in the quarter. It, however, beat the Zacks Consensus Estimate of $1,486.7 million. Sales were hurt by lower average selling prices as lower global energy costs led to reduced globa ...

CF Industries (CF) reported $1.57 billion in revenue for the quarter ended December 2023, representing a year-over-year decline of 39.8%. EPS of $1.49 for the same period compares to $4.35 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.49 billion, representing a surprise of +5.67%. The company delivered an EPS surprise of -4.49%, with the consensus EPS estimate being $1.56.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ...

CF Industries (CF) came out with quarterly earnings of $1.49 per share, missing the Zacks Consensus Estimate of $1.56 per share. This compares to earnings of $4.35 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -4.49%. A quarter ago, it was expected that this fertilizer maker would post earnings of $0.94 per share when it actually produced earnings of $0.85, delivering a surprise of -9.57%.Over the last four quarters, the com ...