Nutrien’s Q2 Results Top Estimates; Shares Rise 4.4%

Shares of fertilizer company Nutrien Ltd. (NTR) jumped 4.4% to close at $63 in the extended trading session on Monday after the company posted stronger-than-expected results for the second quarter ended June 30, 2021. The robust results were primarily driven by growth in revenues.

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Quarterly revenues of $9.76 billion were up 16% from the same quarter last year and surpassed the Street’s estimates of $3.99 billion. The growth in revenues can be attributed primarily to an 11% year-over-year rise in Retail revenues, which stood $7.53 billion.

The company’s earnings per share (EPS) for the quarter stood at $2.08, which surpassed the consensus estimate of $0.29.

Notably, Nutrien has also raised its guidance for 2021. It expects EPS to be in the range of $4.60-$5.10 up from $2.55-$3.25 earlier. The consensus estimate for the same is pegged at $2.34. Further, the company increased its adjusted EBITDA guidance for the year from $4.4 billion-$4.9 billion to $6 billion-$6.4 billion.

The CEO of Nutrien, Mayo Schmidt, said, “We delivered record earnings across our global business for the second quarter and first half of 2021 and expect the remainder of the year to contribute to a full year record. We showcased Nutrien’s unique competitive advantages, strong operating performance and the significant leverage to higher fertilizer prices as we focus on our purpose to help growers meet the ever-growing demand for increased food production in a sustainable manner.” (See Nutrien stock chart on TipRanks)

Last month, Bank of America Securities analyst Steve Byrne reiterated a Buy rating on the stock. The analyst, however, raised the price target from $71 to $77, which implies upside potential of 27.7% from current levels.

Consensus among analysts is a Strong Buy based on 8 Buys and 1 Hold. The average Nutrien price target of $72.78 implies upside potential of 20.7% from current levels.

Nutrien scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained 64.5% over the past year.