Stock News Buzz: CHS Inc. (NASDAQ:CHSCP)

CHS Inc. (NASDAQ:CHSCP) The stock transacted 18228 shares during last trading day however it has an average volume of 15.52K shares. It spotted trading -3.23% off 52-week high price. On the other end, the stock has been noted 9.29% away from the low price over the last 52-weeks.

On Jan. 8, 2020, CHS Inc. (NASDAQ:CHSCP) the nation’s leading agribusiness cooperative, released net income of $177.9 million for the first quarter of fiscal year 2020 that ended Nov. 30, 2019. This compares to net income of $347.5 million in the first quarter of fiscal year 2019.

The results for the first quarter of fiscal year 2020 reflect:

  • Revenues of $7.6 billion compared to revenues of $8.5 billion for the first quarter of fiscal year 2019.
  • Strong supply chain performance in our propane business that was a positive contributor resulting from efficient sourcing of propane during significantly increased fall demand – brought on by unseasonably early cold and wet weather during harvest – for crop drying and home heating.
  • Less advantageous market conditions in our refined fuels business compared to the first quarter of fiscal year 2019, during which the company experienced historically wide pricing spreads between Canadian crude oil and crude oil from the United States. CHS processes Canadian crude oil at its refineries in Laurel, Montana, and McPherson, Kansas.
  • Poor weather conditions that occurred in fiscal year 2019 and the first quarter of fiscal year 2020 continued to negatively impact our Ag segment’s operations, resulting in lower crop yields, poor grain quality in some areas and lower fall crop nutrients sales.
  • Pressure on grain volume and margins due to slow movement of grain associated with unresolved trade issues between the United States and foreign trading partners.
  • Decreased fertilizer volumes compared to the first quarter of fiscal year 2019 due to a slow harvest in the first quarter of fiscal year 2020.

We are not immune to the challenges of our industry, and our first quarter results reflect the difficulties brought on by fall weather and ongoing trade tensions, said Jay Debertin, president and CEO of CHS Inc. The cooperative system, however, provides CHS and its owners stability to withstand these difficult times. Our focus remains on building efficiencies in our supply chain and on operating in this challenging agricultural environment.

CHSCP has a gross margin of 4.30% and an operating margin of 2.10% while its profit margin remained 2.60% for the last 12 months.

The company has 12.36M of outstanding shares and 12.26M shares were floated in the market. According to the most recent quarter its current ratio was 1.2 that represents company’s ability to meet its current financial obligations. The price moved ahead of 2.23% from the mean of 20 days, 2.39% from mean of 50 days SMA and performed 1.61% from mean of 200 days price. Company’s performance for the week was 2.86%, 2.35% for month and YTD performance remained 2.86%.

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