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CF Industries' Earnings and Sales Surpass Estimates in Q4
CFCF(CF) ZACKS·2025-02-20 14:00

Core Viewpoint - CF Industries Holdings, Inc. reported a strong fourth-quarter performance with earnings per share of 1.89,surpassingboththepreviousyear′s1.89, surpassing both the previous year's 1.44 and the Zacks Consensus Estimate of 1.49[1][2].FinancialPerformance−Netsalesforthefourthquarterdecreasedbyapproximately31.49 [1][2]. Financial Performance - Net sales for the fourth quarter decreased by approximately 3% year over year to 1,524 million, but exceeded the Zacks Consensus Estimate of 1,466.4million[2].−Forthefullyear2024,earningspersharewere1,466.4 million [2]. - For the full year 2024, earnings per share were 6.74, down from 7.87inthepreviousyear,withnetsalesdecliningaround10.57.87 in the previous year, with net sales declining around 10.5% year over year to 5,936 million [8]. Segment Review - The Ammonia segment saw a 15.5% increase in net sales year over year to 572million,exceedingestimates,withanaveragesellingpricepertonof572 million, exceeding estimates, with an average selling price per ton of 461 [4]. - The Granular Urea segment experienced an 11.2% decline in sales to 348million,missingestimates,whiletheaveragesellingpricepertonwas348 million, missing estimates, while the average selling price per ton was 347 [5]. - The Urea Ammonium Nitrate segment's sales fell around 11% to 372million,beatingestimates,withanaveragesellingpricepertonof372 million, beating estimates, with an average selling price per ton of 231 [6]. - The Ammonium Nitrate segment's sales decreased by 15.8% to 101million,surpassingestimates,withanaveragesellingpricepertonof101 million, surpassing estimates, with an average selling price per ton of 283 [7]. Cash Flow and Share Repurchase - CF Industries ended 2024 with cash and cash equivalents of 1,614million,adecreaseofapproximately20.61,614 million, a decrease of approximately 20.6% year over year [9]. - The company repurchased 18.8 million shares for 1.51 billion in 2024, including 4.4 million shares for $385 million in the fourth quarter [9]. Market Outlook - The company anticipates a positive global supply-demand balance, with inventories considered below normal and challenging production economics for marginal producers in Europe [10]. - Expectations for higher U.S. corn returns compared to soybeans are driven by rising corn prices and lower yield predictions, which may boost nitrogen demand [11]. - Low urea inventory in India is expected due to strong domestic demand and lower-than-targeted domestic output [12]. Stock Performance - CF Industries' shares have increased by 8.6% over the past year, outperforming the industry average rise of 2.2% [13].