Q: Could you please comment on Nutrien’s earnings? I’m considering increasing my holdings. Is it a good buy? Thanks!
5i Research Answer:
EPS of $2.34 beat estimates of $2.18; Revenue of $10.15B missed estimates of $10.74B. EBITDA of $2.23B was 2% better than expected. EBITDA guidance was cut marginally. Retail sales fell 12%. Potash sales fell 25%. A new CFO was named. The results reflect market weakness, generally, and not company-specific issues. Operating costs were good, and the company noted improving fertilizer demand going forward. The low stiock valuation we think reflects the situation well. We would consider it a decent buy for investors with some patience. China demand needs to improve but the stock should recover over time, and the dividend is nice while one waits.