Nutrien Reports Mixed Q4 Results, 2023 Guidance Disappoints

Nutrien (NYSE:NTR) reported its Q4 results last week, with EPS of $2.02 coming in worse than the Street estimate of $2.57, while revenue of $7.53 billion beat the consensus estimate of $7.49 billion.

For fiscal 2023, the company expects EPS in the range of $8.45-$10.65, missing the consensus estimate of $11.49.

RBC Capital analysts think that the agricultural fundamentals are still robust, and that the company's 2023 guide will aid in setting realistic expectations for a potential rebound in fertilizer demand.

The analysts anticipate that the company will continue to generate substantial operating cash flows, though this will be somewhat offset by the increasing capital expenditures required for maintaining and expanding operations. Nonetheless, the company should be able to generate solid free cash flows, which will be used to continue repurchasing shares and paying dividends.