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CVR Partners (UAN) Records Q4 Loss, Revenues Beat Estimates

CVR PartnersUAN posted a loss of 13 cents per share in the fourth quarter of 2016, versus a profit of 26 cents reported a year ago. Analysts polled by Zacks were expecting earnings of 3 cents per share on an average for the quarter.

Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) were $18.3 million in the reported quarter, down from $28.5 million recorded a year ago.

The company posted revenues of $84.9 million in the quarter, up around 29% year over year. Revenues marginally beat the Zacks Consensus Estimate of $84.7 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 207,600 tons of ammonia and purchased an additional 2,000 tons in the reported quarter of which 62,600 net tons were available for sale while the rest was upgraded to other fertilizers including 330,700 tons of UAN.

Consolidated average realized gate prices for urea ammonium nitrate ("UAN") and ammonia were $147 per ton and $352 per ton, respectively, in the reported quarter.

Financials

CVR Partners ended 2016 with cash and cash equivalents of $55.6 million, up around 11% year over year. Total debt was $623.1 million, a roughly five-fold year over year rise.

CVR Partners has decided not to pay any cash distribution for the fourth quarter of 2016.

Outlook

The company said that it is seeing a considerable improvement in nitrogen fertilizer pricing (for deliveries during first-half 2017) since Dec 2016, driven by the delay of additional supply coming onstream from new and expanded U.S. production facilities, reduced levels of imports into the U.S. and the expectation of a strong spring corn planting season in the U.S.

Price Performance

CVR Partners has outperformed the Zacks categorized Fertilizers industry in the past three months. The company's shares have gained around 13.2% over this period, compared with roughly 7.8% gain recorded by the industry.

Zacks Rank & Key Picks

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

Better-ranked companies in the basic materials space include Methanex Corporation MEOH , Albemarle Corporation ALB and The Scotts Miracle-Gro Company SMG .

Methanex has an expected long-term growth of 15% and sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Albemarle holds a Zacks Rank #2 (Buy) and has an expected long-term growth of 10%.

Scotts Miracle-Gro holds a Zacks Rank #2 and has an expected long-term growth of 12.4%.

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CVR Partners, LP (UAN): Free Stock Analysis Report

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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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