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CVR Partners (UAN) Q1 Loss Wider than Expected, Revenues Beat

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CVR PartnersUAN posted a loss of 9 cents per share in the first quarter of 2017, versus a profit of 25 cents reported a year ago. The reported loss was higher than the Zacks Consensus Estimate of a loss of 2 cents for the quarter.

Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) were $20.8 million in the reported quarter, down from $27.9 million recorded a year ago.

The company posted revenues of $85.3 million in the quarter, up around 16.7% year over year, beating the Zacks Consensus Estimate of $79 million.

CVR Partners, LP Price, Consensus and EPS Surprise

CVR Partners, LP Price, Consensus and EPS Surprise | CVR Partners, LP Quote

Operational Statistics

CVR Partners produced 219,200 tons of ammonia in the reported quarter of which 80,000 net tons were available for sale while the rest was upgraded to other fertilizers including 341,900 tons of urea ammonium nitrate (UAN).

Consolidated average realized gate prices for UAN and ammonia were $160 and $308 per ton, respectively, in the reported quarter.

Financials

CVR Partners ended first quarter with cash and cash equivalents of $81.5 million, up around 56.7% year over year.

Total debt was $623.8 million, a roughly five-fold year over year rise.

CVR Partners declared cash distribution of 2 cents per share for the first quarter of 2017, compared to 27 cents declared in the year-ago quarter.

Outlook

According to CEO, Mark Pytosh, as spring plantation is underway the company expects demand to remain strong because this year farmers are expected to plant 90 million acres of corn.

Price Performance

CVR Partners' shares declined around 23.2% over the past three months underperforming the Zacks categorized Fertilizers industry's 9.1% loss.

Zacks Rank & Key Picks

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

Better-ranked companies in the basic materials space include Kronos Worldwide Inc KRO , Nucor Corp. NUE and Univar Inc. UNVR . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 stocks here .

Kronos has an expected long-term earnings growth of 5%.

Nucor has an expected long-term earnings growth of 12%.

Univar has an expected long-term earnings growth of 9.4%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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