Nutrien (TSX:NTR) Stock Earnings: What to Watch on Monday

Nutrien (TSX:NTR)(NYSE:NTR) stock releases its earnings on Monday, so what can investors expect after the record-setting results of the quarter before?

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Key points

  • Analysts expect a 9.5% increase quarter over quarter in revenue for Nutrien (TSX:NTR)(NYSE:NTR) stock.
  • The company closed an acquisition last quarter and increased its annual guidance, hitting records. But can it do it again?

Nutrien, the world’s largest provider of crop nutrients and services, will announce its earnings on Monday, Nov. 1 after market close. This will be followed by a conference call the next day, Nov. 2 at 10 a.m. ET.

Motley Fool investors will watch the Saskatchewan-based nutrient company for signs that optimism can continue. Nutrien stock set records last quarter, beating analyst expectations. In fact, it’s done this for the last four consecutive quarters. Furthermore, revenue growth remains incredible given supply chain issues, more than doubling quarter over quarter last earnings report.

So, let’s take a look at what Motley Fool investors can expect on the TSX from Nutrien stock.

Earnings

Nutrien stock has had a strong run in 2021. The stock continues to trade at all-time highs, up 31% as of writing. This comes from a variety of sources, with analysts believing the stock has a further 13% to go to reach fair value.

Last quarter was a record-setting one for Nutrien stock, with Motley Fool investors witnessing adjusted EBITDA of $3 billion, and free cash flow of $1.9 billion in the first half of 2021. This was an increase of 36% and 40% year over year, respectively. This significantly beat the company’s previous record from the first half of 2019.

A notable change was an increase in its digitally enabled retail platform, which brought in $1.6 billion in the first half of the year. That was nearly double the sales compared to the year before.

But what Motley Fool investors need to notice is Nutrien stock continued to reference the first half of the year, rather than the quarter. In this light, numbers change. Whereas earnings per share offered a 262% surprise for analysts the quarter before, they remained in line with estimates for the next quarter.

Growth

For the next quarter, Motley Fool investors should pay close attention to two things. The first is its Terra Nova acquisition. This saw the addition of a retail business in Brazil, which continues its growth-through-acquisition strategy. It also created an agreement with EXMAR NV to “develop and build low-carbon, ammonia-fueled vessel to further reduce maritime transportation emissions.”

The next issue will be to address supply-chain issues that currently plague the entire world. Furthermore, inflation also threatens to put a dampen on the company. More expensive products means companies and indeed countries will need to renegotiate contracts. This could be a poor outcome for Nutrien stock.

Guidance

That being said, last quarter, Nutrien stock raised its full-year 2021 adjusted EBITDA guidance to between $6 billion and $6.4 billion. It also raised its adjusted net earnings per share to between $4.60 and $5.10 for the year. This comes from a variety of avenues, including an increase in the overall business, potash sales, and growth in customers around the world.

As the market opens Tuesday morning, that’s when Motley Fool investors are likely to see change on the TSX. The company is slated to announce its results after market on Monday, Nov. 1.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Nutrien Ltd.

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