CF Industries Holdings Beats Analyst Estimates on EPS

CF Industries Holdings (NYSE: CF  ) reported earnings on Feb. 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), CF Industries Holdings missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share grew slightly. GAAP earnings per share grew.

Gross margins dropped, operating margins dropped, net margins increased.

Revenue details
CF Industries Holdings tallied revenue of $1.48 billion. The 10 analysts polled by S&P Capital IQ expected sales of $1.59 billion on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $1.72 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $7.27. The 18 earnings estimates compiled by S&P Capital IQ forecast $6.89 per share. Non-GAAP EPS of $7.27 for Q4 were 2.0% higher than the prior-year quarter's $7.13 per share. GAAP EPS of $7.40 for Q4 were 11% higher than the prior-year quarter's $6.65 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 44.3%, 600 basis points worse than the prior-year quarter. Operating margin was 41.1%, 720 basis points worse than the prior-year quarter. Net margin was 31.8%, 630 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.50 billion. On the bottom line, the average EPS estimate is $6.09.

Next year's average estimate for revenue is $6.08 billion. The average EPS estimate is $25.93.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,261 members out of 1,307 rating the stock outperform, and 46 members rating it underperform. Among 279 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 271 give CF Industries Holdings a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CF Industries Holdings is hold, with an average price target of $232.57.

The rich are different than you and me: They might not notice the moneymaking stories right under our noses. In our new report, "Middle-Class Millionaire-Makers: 3 Stocks Wall Street's Too Rich to Notice," we give you three Peter Lynch-inspired buy-what-you-know stocks for the 99%. Click here for instant access to this free report.

• Add CF Industries Holdings to My Watchlist.