Northbrook, Illinois-based CF Industries Holdings, Inc. (CF) manufactures and sells hydrogen and nitrogen products for energy, fertilizer, emissions abatement, and other industrial activities. Valued at a market cap of $13.1 billion, the company also offers diesel exhaust fluid, urea liquor, nitric acid, and aqua ammonia products. It is scheduled to announce its fiscal Q1 earnings for 2025 after the market closes on Wednesday, May 7.
Ahead of this event, analysts expect this agricultural inputs company to report a profit of $1.47 per share, up 42.7% from $1.03 per share in the year-ago quarter. The company has exceeded Wall Street's earnings estimates in three of the last four quarters, while missing on another occasion. In Q4 2024, CF’s EPS of $1.89 outpaced the forecasted figure by a notable margin of 26.9%.
For fiscal 2025, analysts expect CF to report a profit of $5.97 per share, down 11.4% from $6.74 in fiscal 2024. Moreover, its EPS is expected to further decline by 3% year over year to $5.79 in fiscal 2026.
CF has lagged behind the S&P 500 Index's ($SPX) 8.2% gain over the past 52 weeks, with its shares down 2.5% over the same time frame. However, it has outpaced the Materials Select Sector SPDR Fund’s (XLB) 5.8% fall over the same time period.
On Feb. 19, CF released its Q4 results. Shares of the company fell 4.2% in the following trading session, despite delivering a better-than-expected performance. Its revenue declined 3% from the year-ago quarter to $1.5 billion but exceeded Wall Street's expectations by 3.4%. Meanwhile, its net earnings rose 31.3% year-over-year to $1.89 per share, handily exceeding consensus estimates. Higher gross margin and the company’s cost-advantaged North American-based production network supported the robust bottom-line growth. However, a decline in revenue across most of its reportable segments, lower sales volumes, and a 12.5% drop in cash from operating activities might have dampened investor confidence and led to the stock’s decline.
Wall Street analysts are moderately optimistic about CF’s stock, with a "Moderate Buy" rating overall. Among 17 analysts covering the stock, five recommend "Strong Buy," 11 indicate “Hold,” and one suggests a “Strong Sell” rating. The mean price target for CF is $87.44, which indicates a 13.1% potential upside from the current levels.
