Timely Buy Of The Week July 31, 2008
- Date: 2008-08-04 - Word Count: 363
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CF Industries Holdings, Inc. (CF) is one of North America's largest manufacturers and distributors of nitrogen and phosphate fertilizers. The company reported second quarter estimates that easily beat Wall Street estimates for the fifth consecutive quarter.
CF Industries is headquartered in Deerfield, IL. The company operates nitrogen fertilizer manufacturing facilities in Donaldsonville, LA and Medicine Hat, Alberta; phosphate mining and production operations in Central Florida; and a variety of fertilizer distribution terminals and warehouses in the Midwest.
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CF controls 26% of the fertilizer market for nitrogen and 19% for phosphate in the key agricultural markets in the Midwest. The company also exports fertilizers to Latin and South America and owns a 50% interest in KEYTRADE AG, a global fertilizer trader headquartered in Switzerland.
CF Reports Record Earnings for the Second Quarter
On July 28, CF reported second quarter earnings and easily beat Wall Street estimates by 15.17%. Net income was a record of $288.6 million, or $5.02 per share. Adjusted earnings per share were $4.10 compared to analysts' estimates of $3.56 per share.
Sales were also a record, up 37% to $1.16 billion as price increases offset any weather-related downturns, including the Midwest flooding.
The fertilizer segment is expected to remain strong for the rest of the year.
"One illustration of the market's strength is the fact that the recent upturn in urea prices took place with India, a major consumer, largely out of the market," said Stephen R. Wilson, chairman and chief executive officer of CF Industries Holdings, Inc.
"India, Latin America, and Western Europe now have begun to come into the market more actively. This development - coupled with large U.S. fertilizer import requirements - could create strong fundamentals for fertilizer pricing this fall," he said.
The company said that while demand looked strong for fertilizers through the spring of 2009 there were some events that could possibly lower this demand, including uncertainty regarding export tax levels in China and the cost of sulfur.
CF Has Strong Fundamentals
CF Industries Holdings is a Zacks #1 Rank (Strong Buy) stock. CF Industries is cheap, despite a recent run-up in the stock. Its forward P/E is only 8.80. The company has a stellar one year return on equity (ROE) of 41.39%.
CF Industries is headquartered in Deerfield, IL. The company operates nitrogen fertilizer manufacturing facilities in Donaldsonville, LA and Medicine Hat, Alberta; phosphate mining and production operations in Central Florida; and a variety of fertilizer distribution terminals and warehouses in the Midwest.
Click here to find out more!
CF controls 26% of the fertilizer market for nitrogen and 19% for phosphate in the key agricultural markets in the Midwest. The company also exports fertilizers to Latin and South America and owns a 50% interest in KEYTRADE AG, a global fertilizer trader headquartered in Switzerland.
CF Reports Record Earnings for the Second Quarter
On July 28, CF reported second quarter earnings and easily beat Wall Street estimates by 15.17%. Net income was a record of $288.6 million, or $5.02 per share. Adjusted earnings per share were $4.10 compared to analysts' estimates of $3.56 per share.
Sales were also a record, up 37% to $1.16 billion as price increases offset any weather-related downturns, including the Midwest flooding.
The fertilizer segment is expected to remain strong for the rest of the year.
"One illustration of the market's strength is the fact that the recent upturn in urea prices took place with India, a major consumer, largely out of the market," said Stephen R. Wilson, chairman and chief executive officer of CF Industries Holdings, Inc.
"India, Latin America, and Western Europe now have begun to come into the market more actively. This development - coupled with large U.S. fertilizer import requirements - could create strong fundamentals for fertilizer pricing this fall," he said.
The company said that while demand looked strong for fertilizers through the spring of 2009 there were some events that could possibly lower this demand, including uncertainty regarding export tax levels in China and the cost of sulfur.
CF Has Strong Fundamentals
CF Industries Holdings is a Zacks #1 Rank (Strong Buy) stock. CF Industries is cheap, despite a recent run-up in the stock. Its forward P/E is only 8.80. The company has a stellar one year return on equity (ROE) of 41.39%.
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Tracey Ryniec is an Editor at Zacks Investment Research. To learn more visit www.zacks.com/commentary/8199/CF+Industries+Holdings%2C+Inc.+819900 Your Article Search Directory : Find in Articles
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