Nutrien slashes full-year earnings steerage on decrease potash volumes, costs (NYSE:NTR)

Nutrien (NYSE:NTR) -4% post-market Wednesday after lacking expectations for Q3 adjusted earnings and revenues, whereas additionally reducing full-year earnings steerage to replicate decrease near-term potash gross sales volumes and costs.

Q3 adjusted earnings greater than doubled to $1.58B, or $2.94/share, from $726M, or $1.25/share, within the year-earlier quarter, however EPS was $1.47 worse than the S&P Capital IQ consensus of $3.98, whereas revenues rose 35.9% Y/Y to $8.19B but additionally under analyst consensus of $8.68B, after the corporate generated document web earnings and adjusted EBITDA within the first 9 months of 2022 on account of larger realized costs and powerful retail efficiency that greater than offset decrease fertilizer gross sales volumes.

Nutrien (NTR) now sees FY 2002 adjusted earnings of $13.25-$14.50/share, effectively under earlier steerage of $15.80-$17.80 and under $16.58 S&P Capital IQ consensus; it additionally lowered its outlook for full-year adjusted EBITDA to $12.2B-$13.2B from prior steerage of $14B-$15.5B.

Throughout Q3, the corporate noticed a short lived discount in potash buying in North America and Brazil, which damage its gross sales volumes and realized costs within the yr’s H2, however “the underlying demand drivers stay sturdy and international fertilizer provide challenges nonetheless persist, making a supportive atmosphere for Nutrien,” President and CEO Ken Seitz stated.

Nutrien’s (NTR) inventory value return reveals a 9% YTD acquire and a 22% enhance through the previous yr.