Nutrien Ltd. (NTR) is gaining from healthy demand for crop nutrients, its actions to reduce costs and strategic acquisitions amid headwinds from lower fertilizer prices. NTR's shares are down 23.5% over a year compared with a 20.5% decline recorded by its industry. Image Source: Zacks Investment Research Let's find out why this fertilizer stock is worth retaining at the moment. Healthy Demand, Acquisitions & Cost Cuts Aid NTR Stock Nutrien is well-placed to benefit from higher demand for fertilizers, backed ...

Thomas Barwick Investing in basic materials companies requires a very different approach to other segments of the equity market. As opposed to most cyclical stocks, companies operating in the agricultural space are exposed to much longer cycles in prices of the underlying commodities. That is why, it is so important for investors in Nutrien Ltd. (NYSE:NTR) not to be swayed by short-term oriented analysts and market commentators. The reason why I an saying that is because NTR has been an utter disaster for s ...

Core Viewpoint - Nutrien's recent earnings report shows a mixed performance with profits declining year-over-year, while adjusted earnings per share exceeded estimates, indicating potential resilience despite revenue challenges [2][10]. Financial Performance - Nutrien reported profits of $392 million or 78 cents per share in Q2 2024, down from $448 million or 89 cents in the same quarter last year [2]. - Adjusted earnings per share were $2.34, beating the Zacks Consensus Estimate of $2.13 [2]. - Sales fell approximately 13% year-over-year to $10,156 million, missing the Zacks Consensus Estimate of $10,893.1 million [2]. Segment Highlights - Nutrien Ag Solutions (Retail) segment sales declined 12% year-over-year to $8,074 million, primarily due to lower selling prices [3]. - The Potash division experienced a 25% year-over-year sales decline, totaling $756 million, falling short of the estimate of $860.3 million [4]. - The Nitrogen segment posted sales of $1,028 million, down about 15% year-over-year, slightly below the estimate of $1,033.8 million [5]. - The Phosphate segment generated sales of $394 million, down around 22% year-over-year, exceeding the estimate of $233.3 million [6]. Financial Position - At the end of the quarter, Nutrien had cash and cash equivalents of $1,004 million, up approximately 36% year-over-year [7]. - Long-term debt was $9,399 million, down nearly 1% year-over-year [7]. - Cash provided by operating activities was $1,807 million in the reported quarter [7]. Guidance - Retail adjusted EBITDA guidance has been revised downward to a range of $1.5-$1.7 billion due to market instability in Brazil and delayed planting in North America [7]. - Potash sales volume guidance has been increased to 13.2-13.8 million tons, driven by expectations of higher global demand in 2024 [7]. - Nitrogen sales volume guidance has been narrowed to 10.7-11.1 million tons, while Phosphate sales volume guidance has been lowered to 2.5-2.6 million tons [8]. Market Sentiment - There has been a downward trend in estimates, with the consensus estimate shifting down by 17.11% [10]. - Nutrien has a Zacks Rank 3 (Hold), indicating expectations for an in-line return from the stock in the coming months [12]. VGM Scores - Nutrien has a Growth Score of B, a Momentum Score of D, and a Value Score of A, placing it in the top 20% for the value investment strategy [11]. - The aggregate VGM Score is A, suggesting overall strong performance across multiple investment strategies [11].

Core Viewpoint - Nutrien Ltd. is experiencing healthy demand for crop nutrients, supported by strategic acquisitions and cost reduction efforts, despite facing challenges from declining fertilizer prices [1][3][7]. Group 1: Demand and Sales Performance - Nutrien is well-positioned to benefit from increased fertilizer demand, particularly in key offshore markets and North America, leading to record potash sales volumes in the first half of 2024 [3][4]. - Phosphate sales volumes have also increased compared to the first half of 2023 due to strong demand across fertilizer, industrial, and feed products [3]. - The nitrogen sales volumes remained stable year-over-year, indicating consistent demand in major markets [3]. Group 2: Market Dynamics - Global potash demand is expected to rise due to strong grower economics, improved affordability, and low inventory levels [4]. - The phosphate market is benefiting from higher global demand and low inventories among producers and channels [4]. - The nitrogen fertilizer market remains healthy, driven by demand from North America, India, and Brazil [4]. Group 3: Strategic Actions and Cost Management - Nutrien is expanding its presence in Brazil through acquisitions and is expected to continue pursuing targeted opportunities in core markets [5]. - The company is focused on lowering production costs in its potash business and has implemented several strategic actions to reduce controllable costs and enhance free cash flow [6]. - Lower natural gas costs and reduced input costs for ammonia and sulfur are contributing to a decrease in the cost of goods sold [6]. Group 4: Pricing Challenges - Softer fertilizer prices are anticipated to negatively impact Nutrien's margins, with prices for phosphate and potash declining since mid-2022 due to geopolitical factors [7][8]. - Global nitrogen prices have also decreased since early 2023, influenced by higher supply availability and lower energy costs [8]. - The decline in fertilizer selling prices is expected to adversely affect Nutrien's sales and profitability in the near term [8].

ridvan_celik/E+ via Getty Images Introduction North American agriculture is not in a great spot as sentiment is pressured by a number of headwinds, including subdued crop prices, sticky inflation, and elevated interest rates. This is according to findings from the Purdue Center for Commercial Agriculture, which assesses farm sentiment on a monthly basis. Looking ahead to next year what are your biggest concerns for your farming operation? % of respondents 60 =7/23 = 8/23 = 9/23 = 10/23 = 12/23 = 1/24 = 2/24 ...

Nutrien Ltd. (NYSE:NTR) Q2 2024 Earnings Conference Call August 8, 2024 10:00 AM ET Company Participants Jeff Holzman - Vice President Investor Relations Ken Seitz - President & Chief Executive Officer Pedro Farah - Executive Vice President & Chief Financial Officer Jeff Tarsi - Executive Vice President and President, Global Retail Mark Thompson - Executive Vice President & Chief Commercial Officer Conference Call Participants Chris Parkinson - Wolfe Research Andrew Wong - RBC Capital Markets Jacob Bout - C ...

For the quarter ended June 2024, Nutrien (NTR) reported revenue of $10.16 billion, down 12.9% over the same period last year. EPS came in at $2.34, compared to $2.53 in the year-ago quarter. The reported revenue represents a surprise of -6.77% over the Zacks Consensus Estimate of $10.89 billion. With the consensus EPS estimate being $2.13, the EPS surprise was +9.86%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their ...

In its upcoming report, Nutrien (NTR) is predicted by Wall Street analysts to post quarterly earnings of $2.13 per share, reflecting a decline of 15.8% compared to the same period last year. Revenues are forecasted to be $10.89 billion, representing a year-over-year decrease of 6.5%. The consensus EPS estimate for the quarter has been revised 1.9% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during ...

The market expects Nutrien (NTR) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price c ...

The senior notes will be unsecured and will rank on an equal footing with the current senior unsecured debt of Nutrien. CIBC World Markets Corp., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and RBC Capital Markets, LLC are the joint book-running managers for the offering. For potash, the company's sales volume guidance, estimated between 13 and 13.8 million tons, assumes a more balanced distribution of volumes between the first and second halves compared with the prior year. The nitrogen sales volum ...