Key Developments in the Cannabis Sector Last Week
The week ending February 16 wasn’t so positive for marijuana stocks even though the broader market indexes ended in the positive territory.
During 4Q17, CF Industries received a one-time tax benefit of $491.0 million, or $2.09 per share, from the lowered corporate taxes in the US.
In 4Q17, CF Industries saw an improvement in profitability due to an increase in production, selling prices, and operating efficiencies.
CF’s Ammonia segment’s gross margin per ton expanded from $1.00 per metric ton to $36.00 per metric ton.
CF’s Granular Urea segment’s selling price increased 14.0% year-over-year to $244.00 per metric ton.
During 4Q17, CF Industries’ Ammonia segment grew 58.0% year-over-year to 1.2 million metric tons.
Year-over-year, CF’s Ammonia segment’s sales grew 63.0% to $344.0 million from $211.0 million in 4Q16.
CF Industries (CF) reported its 4Q17 earnings on February 14. CF posted a loss of $0.02 per share, beating the estimate of a loss of $0.08.
Last week, the fertilizer affordability showed some positive momentum week-over-week.
In the week ending January 26, potash prices at the locations discussed below were broadly flat to positive and remained strong compared to levels observed a year ago.
MAP (monoammonium phosphate) prices were mixed at two locations: Brazil and NOLA (New Orleans).
The DAP prices in India rose the most last week by 1.5% week-over-week to $407 per metric ton from $401 per metric ton a week ago.
Lately, natural gas prices have experienced high volatility primarily due to the swing in weather in North America.
Last week, granular urea prices showed mixed momentum, while prilled urea prices moved in a positive direction week-over-week.
In the week ending January 26, the VanEck Vectors Agribusiness ETF (MOO) ended the week with a rise of 1.3% week-over-week.
SMG said it intends to pass on the benefits from tax savings to its employees by increasing salaries and through other programs.
According to Scotts Miracle-Gro, the Hawthorne segment’s sales fell $12 million in 1Q18, excluding acquisitions.
On Tuesday, January 30, 2018, Scotts Miracle-Gro (SMG) reported its 1Q18 earnings with a GAAP loss per share of $0.35. The stock took a significant beating and fell 14%.
Fertilizer affordability has seen some tightening in the last couple of months.
Potash prices remained strong in the week ending January 19.