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CVR Partners (UAN) Q3 Earnings Trail Estimates, Sales Decline

CVR Partners, LP UAN posted a loss of $31.6 million or 28 cents per share in the third quarter of 2017, as compared with a loss of $13.4 million or 12 cents per share logged a year ago. The reported loss per share was wider than the Zacks Consensus Estimate of a loss of 10 cents.

Cost of sales rose roughly 15.1% year over year to $79.2 million in the reported quarter.

The company garnered revenues of $69.4 million in the third quarter, down roughly 11.6% from $78.5 million recorded a year ago.

CVR Partners, LP Price, Consensus and EPS Surprise

 

 

Operational Statistics

CVR Partners produced 180,700 tons of ammonia in the quarter of which 46,200 net tons were available for sale while the rest was upgraded to other fertilizers including 306,600 tons of urea ammonium nitrate (UAN).

Consolidated average realized gate prices for UAN and ammonia were $138 and $214 per ton, respectively, in the reported quarter, down 10.4% and 38% year over year, respectively.

Financials

CVR Partners ended the quarter with cash and cash equivalents of $70 million, up around 7.4% year over year. Total debt was $625.2 million, essentially flat year over year.

The company noted that it will not pay a cash distribution for third-quarter 2017.

Outlook

CVR Partners noted that new production capacity continued to unfavorably affect U.S. nitrogen fertilizer pricing. The company, however, has witnessed a significant increase in pricing since July and is seeing these higher prices reflected in product purchases for fourth-quarter 2017 as well as first-half 2018.

Price Performance

CVR Partners’ shares have lost 13.8% over a year underperforming the 28.8% gain of the industry it belongs to.

 


 

Zacks Rank & Key Picks

CVR Partners currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are FMC Corporation FMC, BHP Billiton PLC BBL and Koppers Holdings Inc. KOP.

FMC Corporation has expected long-term earnings growth of 11.3% and sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

BHP Billiton has expected long-term earnings growth of 5.3% and flaunts a Zacks Rank #1.

Koppers Holdings has expected long-term earnings growth of 18% and carries a Zacks Rank #2 (Buy).

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