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Albemarle (ALB) to Post Q4 Earnings: What's in the Cards?
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Albemarle Corporation (ALB - Free Report) will release fourth-quarter 2021 results after the closing bell on Feb 16. The company is likely to have benefited from higher lithium volumes and prices and its cost-reduction actions in the quarter. However, it is expected have faced headwinds from higher raw material and freight costs.
The company beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters. In this timeframe, it delivered an earnings surprise of 22.1%, on average. It posted an earnings surprise of 40% in the last reported quarter.
Albemarle’s shares have rallied 52.1% over a year compared with a 11.1% rise of the industry it belongs to.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
The Zacks Consensus Estimate for revenues for Albemarle for the to-be-reported quarter stands at $884.2 million, reflecting an increase of around 0.6% from the year-ago quarter.
The Zacks Consensus Estimate for net sales for the Lithium unit stands at $413 million, indicating a 15% year-over-year rise. The same for the Bromine Specialties segment for the fourth quarter is pegged at $291 million, reflecting a 10.6% increase on a year-over-year basis.
The Zacks Consensus Estimate for net sales for the Catalysts segment is pinned at $196 million, flat year over year.
Some Factors to Watch For
Albemarle is likely to have benefited from higher volumes in its lithium business in the fourth quarter on continued recovery in global economic activities. Healthy customer orders and plant productivity improvements are like to have supported volumes. Higher lithium prices due to tighter market conditions are also expected to have aided its performance.
The company’s bromine business is also expected to have gained from higher demand and a rebound in certain end markets in the December quarter. It is likely to have witnessed strong demand for flame retardants.
Benefits of the company’s cost-saving, pricing and productivity initiatives are also expected to get reflected in the quarter to be reported. Its cost and productivity actions are expected to have supported margins in the fourth quarter.
However, the company’s results are likely to have been impacted by higher raw material costs as well as logistics and supply-chain disruptions. Higher raw materials, energy and freight costs are expected to have exerted pressure on margins across its segments in the to-be-reported quarter. Volumes and margins are also likely to have remained under pressure in the Catalysts unit.
Our proven model does not conclusively predict an earnings beat for Albemarle this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for Albemarle is -3.38%. The Zacks Consensus Estimate for earnings for the fourth quarter is currently pegged at 96 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Albemarle currently carries a Zacks Rank #1.
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows these have the right combination of elements to post an earnings beat this quarter:
The Zacks Consensus Estimate for Huntsman's fourth-quarter earnings has been revised 4.1% upward over the past 60 days. The consensus estimate for HUN’s earnings for the quarter is currently pegged at 88 cents.
CF Industries Holdings, Inc. (CF - Free Report) , slated to release earnings on Feb 15, has an Earnings ESP of +7.88% and carries a Zacks Rank #3.
The consensus estimate for CF Industries' fourth-quarter earnings has been revised 28.2% upward over the past 60 days. The Zacks Consensus Estimate for CF’s earnings for the quarter stands at $3.41.
Nutrien Ltd. (NTR - Free Report) , scheduled to release earnings on Feb 16, has an Earnings ESP of +2.61% and sports a Zacks Rank #1.
The Zacks Consensus Estimate for Nutrien's fourth-quarter earnings has been revised 0.9% upward over the past 60 days. The consensus estimate for NTR’s earnings for the quarter is currently pegged at $2.30.
Image: Bigstock
Albemarle (ALB) to Post Q4 Earnings: What's in the Cards?
Albemarle Corporation (ALB - Free Report) will release fourth-quarter 2021 results after the closing bell on Feb 16. The company is likely to have benefited from higher lithium volumes and prices and its cost-reduction actions in the quarter. However, it is expected have faced headwinds from higher raw material and freight costs.
The company beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters. In this timeframe, it delivered an earnings surprise of 22.1%, on average. It posted an earnings surprise of 40% in the last reported quarter.
Albemarle’s shares have rallied 52.1% over a year compared with a 11.1% rise of the industry it belongs to.
Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
The Zacks Consensus Estimate for revenues for Albemarle for the to-be-reported quarter stands at $884.2 million, reflecting an increase of around 0.6% from the year-ago quarter.
The Zacks Consensus Estimate for net sales for the Lithium unit stands at $413 million, indicating a 15% year-over-year rise. The same for the Bromine Specialties segment for the fourth quarter is pegged at $291 million, reflecting a 10.6% increase on a year-over-year basis.
The Zacks Consensus Estimate for net sales for the Catalysts segment is pinned at $196 million, flat year over year.
Some Factors to Watch For
Albemarle is likely to have benefited from higher volumes in its lithium business in the fourth quarter on continued recovery in global economic activities. Healthy customer orders and plant productivity improvements are like to have supported volumes. Higher lithium prices due to tighter market conditions are also expected to have aided its performance.
The company’s bromine business is also expected to have gained from higher demand and a rebound in certain end markets in the December quarter. It is likely to have witnessed strong demand for flame retardants.
Benefits of the company’s cost-saving, pricing and productivity initiatives are also expected to get reflected in the quarter to be reported. Its cost and productivity actions are expected to have supported margins in the fourth quarter.
However, the company’s results are likely to have been impacted by higher raw material costs as well as logistics and supply-chain disruptions. Higher raw materials, energy and freight costs are expected to have exerted pressure on margins across its segments in the to-be-reported quarter. Volumes and margins are also likely to have remained under pressure in the Catalysts unit.
Albemarle Corporation Price and EPS Surprise
Albemarle Corporation price-eps-surprise | Albemarle Corporation Quote
Zacks Model
Our proven model does not conclusively predict an earnings beat for Albemarle this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for Albemarle is -3.38%. The Zacks Consensus Estimate for earnings for the fourth quarter is currently pegged at 96 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Albemarle currently carries a Zacks Rank #1.
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows these have the right combination of elements to post an earnings beat this quarter:
Huntsman Corporation (HUN - Free Report) , scheduled to release earnings on Feb 15, has an Earnings ESP of +0.09% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Huntsman's fourth-quarter earnings has been revised 4.1% upward over the past 60 days. The consensus estimate for HUN’s earnings for the quarter is currently pegged at 88 cents.
CF Industries Holdings, Inc. (CF - Free Report) , slated to release earnings on Feb 15, has an Earnings ESP of +7.88% and carries a Zacks Rank #3.
The consensus estimate for CF Industries' fourth-quarter earnings has been revised 28.2% upward over the past 60 days. The Zacks Consensus Estimate for CF’s earnings for the quarter stands at $3.41.
Nutrien Ltd. (NTR - Free Report) , scheduled to release earnings on Feb 16, has an Earnings ESP of +2.61% and sports a Zacks Rank #1.
The Zacks Consensus Estimate for Nutrien's fourth-quarter earnings has been revised 0.9% upward over the past 60 days. The consensus estimate for NTR’s earnings for the quarter is currently pegged at $2.30.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.