CHS Q3 Profit Jumps 15% on Refining Strength, Despite Record Renewable Credit Costs
CHSCP is trading near its 52-week low of $26.61 (0.8% above the low).
Summary
CHS reported fiscal Q3 net income of $267.4M, up from $232.2M a year ago, driven by improved refining margins and higher U.S. energy exports. Revenue rose to $11.6B. However, record-high renewable energy credit costs largely offset the refining gains, and grain margins were pressured by lower global prices and higher transportation costs. The stock is trading near its 52-week low, so the profit beat may provide some support, but the headwinds from renewable credits and weak farm economy are significant. The strong performance from the CF Nitrogen investment partially mitigated fertilizer volume declines.
At the time of this announcement, CHSCP was trading at $26.82 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $328.6M. The 52-week trading range was $26.61 to $30.57. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Reuters.