Nutrien posts wide Q1 earnings miss but sees demand rising in H2
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Nutrien (NYSE:NTR) -3.7% post-market Wednesday after missing estimates by a wide margin for Q1 adjusted earnings and revenues, citing lower realized prices across all segments, as well as lower sales volumes in retail, potash and phosphate.
Q1 net earnings fell to $576M, or $1.14/share, from $1.38B, or $2.39/share, in the year-earlier quarter, as revenues tumbled 20% Y/Y to $6.1B.
Nutrien (NTR) slashed guidance for full-year earnings to $5.50-$7.50/share from its previous outlook of $8.45-$10.65 and well below $8.61 analyst consensus estimate, and now sees FY 2023 adjusted EBITDA of $6.5B-$8B compared to $8.4B-$10B guidance issued in December.
The company also lowered forecast sales volumes for potash to 13.5M-14.3M metric tons from 13.8M-14.6M tons previously, while maintaining its outlook for nitrogen sales of 10.8M-11.4M tons.
Nutrien (NTR) President and CEO Ken Seitz said the company is "encouraged by the continued stabilization of fertilizer markets following a year of unprecedented volatility," and higher demand is anticipated in this year's H2 due to strong agriculture fundamentals, improved grower affordability and lower inventory levels.
The company said geopolitical and weather-related challenges continue to impact global agriculture commodity markets, including significant production and export reductions from Ukraine and severe drought conditions in Argentina.
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