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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 22.5%, on average. It posted an earnings surprise of 37.5% in the last reported quarter. The company is likely to have benefited from higher lithium volumes and prices and its cost-reduction actions in the second quarter.
Albemarle’s shares have gained 18.1% over a year compared with a 8% decline of the industry it belongs to.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
Zacks Model
Our proven model predicts an earnings beat for Albemarle this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat.
Earnings ESP: Earnings ESP for Albemarle is +8.38%. The Zacks Consensus Estimate for the second quarter is currently pegged at $3.03. Our estimate for the quarter is $2.89. 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 #2.
What do the Estimates Say?
The Zacks Consensus Estimate for revenues for Albemarle for the to-be-reported quarter stands at $1,309.2 million, reflecting an increase of around 69.2% from the year-ago quarter. Our estimate for the quarter is $1,423.7 million.
The Zacks Consensus Estimate for net sales for the Lithium unit stands at $739 million, indicating a 130.9% year-over-year rise. Our estimate for the quarter is $904.9 million.
The consensus estimate for the Bromine Specialties segment for the second quarter is pegged at $327 million, reflecting an 16.8% increase on a year-over-year basis. Our estimate for the quarter is $374.2 million.
The Zacks Consensus Estimate for net sales for the Catalysts segment is pinned at $175 million, suggesting a 18.2% year-over-year rise. Our estimate for the quarter is pegged at $144.6 million.
Some Factors to Watch For
Albemarle is likely to have benefited from higher volumes in its lithium business in the second quarter. Healthy customer orders, new capacity and plant productivity improvements are likely to have supported volumes in this business. Higher lithium prices are also expected to have aided its performance. Tight supply conditions and growing demand for electric vehicles are driving lithium prices.
The company’s bromine business is also expected to have gained from strong demand and favorable pricing led by tight market conditions. Albemarle is likely to have witnessed continued strong demand for flame retardants in the June quarter.
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 second quarter.
Here are some companies in the basic materials space you may want to consider, as our model shows these too have the right combination of elements to post an earnings beat this quarter:
The consensus estimate for Cabot’s fiscal third-quarter earnings has been revised 1% upward in the past 60 days. The Zacks Consensus Estimate for CBT’s earnings for the quarter is pegged at $1.53.
Air Products and Chemicals, Inc. (APD - Free Report) , slated to release earnings on Aug 4, has an Earnings ESP of +0.29% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for Air Products’ fiscal third-quarter earnings has been stable over the past 60 days. The consensus estimate for APD’s earnings for the quarter stands at $2.61.
ATI Inc. (ATI - Free Report) , scheduled to release earnings on Aug 4, has an Earnings ESP of +0.90% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for ATI’s second-quarter earnings has been revised 17.8% upward in the past 60 days. The consensus estimate for ATI's earnings for the quarter is currently pegged at 37 cents.
Image: Bigstock
Albemarle (ALB) to Post Q2 Earnings: What's in the Offing?
Albemarle Corporation (ALB - Free Report) will release second-quarter 2022 results after the closing bell on Aug 3.
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 22.5%, on average. It posted an earnings surprise of 37.5% in the last reported quarter. The company is likely to have benefited from higher lithium volumes and prices and its cost-reduction actions in the second quarter.
Albemarle’s shares have gained 18.1% over a year compared with a 8% decline of the industry it belongs to.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
Zacks Model
Our proven model predicts an earnings beat for Albemarle this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat.
Earnings ESP: Earnings ESP for Albemarle is +8.38%. The Zacks Consensus Estimate for the second quarter is currently pegged at $3.03. Our estimate for the quarter is $2.89. 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 #2.
What do the Estimates Say?
The Zacks Consensus Estimate for revenues for Albemarle for the to-be-reported quarter stands at $1,309.2 million, reflecting an increase of around 69.2% from the year-ago quarter. Our estimate for the quarter is $1,423.7 million.
The Zacks Consensus Estimate for net sales for the Lithium unit stands at $739 million, indicating a 130.9% year-over-year rise. Our estimate for the quarter is $904.9 million.
The consensus estimate for the Bromine Specialties segment for the second quarter is pegged at $327 million, reflecting an 16.8% increase on a year-over-year basis. Our estimate for the quarter is $374.2 million.
The Zacks Consensus Estimate for net sales for the Catalysts segment is pinned at $175 million, suggesting a 18.2% year-over-year rise. Our estimate for the quarter is pegged at $144.6 million.
Some Factors to Watch For
Albemarle is likely to have benefited from higher volumes in its lithium business in the second quarter. Healthy customer orders, new capacity and plant productivity improvements are likely to have supported volumes in this business. Higher lithium prices are also expected to have aided its performance. Tight supply conditions and growing demand for electric vehicles are driving lithium prices.
The company’s bromine business is also expected to have gained from strong demand and favorable pricing led by tight market conditions. Albemarle is likely to have witnessed continued strong demand for flame retardants in the June quarter.
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 second quarter.
Albemarle Corporation Price and EPS Surprise
Albemarle Corporation price-eps-surprise | Albemarle Corporation Quote
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider, as our model shows these too have the right combination of elements to post an earnings beat this quarter:
Cabot Corporation (CBT - Free Report) , slated to release earnings on Aug 8, has an Earnings ESP of +0.16% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Cabot’s fiscal third-quarter earnings has been revised 1% upward in the past 60 days. The Zacks Consensus Estimate for CBT’s earnings for the quarter is pegged at $1.53.
Air Products and Chemicals, Inc. (APD - Free Report) , slated to release earnings on Aug 4, has an Earnings ESP of +0.29% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for Air Products’ fiscal third-quarter earnings has been stable over the past 60 days. The consensus estimate for APD’s earnings for the quarter stands at $2.61.
ATI Inc. (ATI - Free Report) , scheduled to release earnings on Aug 4, has an Earnings ESP of +0.90% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for ATI’s second-quarter earnings has been revised 17.8% upward in the past 60 days. The consensus estimate for ATI's earnings for the quarter is currently pegged at 37 cents.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.