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?

| More on:
edit Person using calculator next to charts and graphs

Image source: Getty Images.

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.

More on Metals and Mining Stocks

Nuclear power station cooling tower
Metals and Mining Stocks

If You’d Invested $1,000 in Cameco Stock 5 Years Ago, This Is How Much You’d Have Now

Cameco (TSX:CCO) stock still looks undervalued, despite a 258% rally. Can the uranium miner deliver more capital gains to shareholders?

Read more »

Super sized rock trucks take a load of platinum rich rock into the crusher.
Stocks for Beginners

Cameco Stock and More: 3 TSX Commodity Titans to Watch in 2024

Cameco stock and these others will provide you with growth that goes beyond just a year or two, with all…

Read more »

Handwriting text writing Are You Ready For Tomorrow question. Concept meaning Preparation to the future Motivation Stand blackboard with white words behind blurry blue paper lobs woody floor.
Stocks for Beginners

3 Reasons to Buy Lundin Stock Like There’s No Tomorrow

Lundin stock (TSX:LUN) has been killing its production of copper and plans on blowing its records out of the water…

Read more »

Gold bars
Stocks for Beginners

TSX Materials in March 2024: The Best Stock to Buy Right Now

Materials have been quite volatile, though the price of gold has surged to all-time highs. That makes this stock a…

Read more »

Gold bars
Metals and Mining Stocks

Will Gold Stocks Rally in 2024?

Down almost 30% from all-time highs, Franco-Nevada is a gold mining stock trading at a discount to consensus price target…

Read more »

A miner down a mine shaft
Stocks for Beginners

Canadian Mining Stocks: Buy, Sell or Hold?

Canadian mining stocks have seemed like such a strong investment, but with shares down significantly this year, what should we…

Read more »

Gold king in chess game face with the another silver team on black background (Concept for company strategy, business victory or decision)
Stocks for Beginners

Great News for Gold Stock Investors!

Gold has hit an all-time high! Which is good news for some gold stocks, and really good news for others.

Read more »

Gold bullion on a chart
Metals and Mining Stocks

If Gold Prices Continue to Climb, These 3 Stocks Could Skyrocket

Market certainty and geopolitical tensions typically enhance the demand for gold, and this rise is reflected in a wide range…

Read more »