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Albemarle's (ALB) Q3 Earnings and Revenues Lag Estimates
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Albemarle Corporation (ALB - Free Report) logged a profit of $302.5 million or $2.57 per share in the third quarter of 2023, down from a profit of $897.2 million or $7.61 per share a year ago.
Adjusted earnings in the reported quarter came in at $2.74 per share, lagging the Zacks Consensus Estimate of $3.70.
Revenues climbed roughly 10.5% year over year to $2,310.6 million in the quarter. However, the metric missed the Zacks Consensus Estimate of $2,393.1 million. The top line was driven by increased volumes in Energy Storage and higher pricing in Ketjen.
Albemarle Corporation Price, Consensus and EPS Surprise
Sales from the Energy Storage unit surged around 20% year over year to $1,697.2 million. It fell short of the consensus estimate of $1,723.2 million. Sales were boosted by higher volumes linked to the La Negra III/IV expansion project in Chile, output from the processing facility in Qinzhou, China, and increased tolling volumes in response to the growing demand from customers.
The Specialties segment recorded sales of $352.7 million, down around 20% year over year. It was below the consensus estimate of $385.1 million. Sales were impacted by 7% lower volumes and a 13% decline in pricing.
The Ketjen unit recorded revenues of $260.7 million in the reported quarter, up roughly 10.6% year over year. It was below the consensus estimate of $277.5 million. Sales were aided by higher prices, especially from fluid catalytic cracking and clean fuel technologies.
Financial Position
Albemarle ended the quarter with cash and cash equivalents of roughly $1,601.7 million, up around 16% year over year. Long-term debt was around $3,496 million, up around 12% year over year.
Outlook
Albemarle has revised its 2023 net sales and adjusted EBITDA outlook based on the assumption that recent lithium market pricing will persist throughout the year. The company anticipates net sales in the range of $9.5-$9.8 billion, down from the previous range of $10.4-$11.5 billion. This updated forecast reflects a projected net sales increase of 30% to 35% over the prior year, primarily attributed to the 30% to 35% volumetric growth in Energy Storage driven by new mining and conversion capacity. The adjusted EBITDA for the year is now projected to be in the range of $3.2-$3.4 billion, as opposed to the earlier estimate of $3.8-$4.4 billion.
Albemarle expects adjusted earnings per share for 2023 in the band of $21.50-$23.50, down from its earlier view of $25.00-$29.50.
The company anticipates capital expenditures of $1.9-$2.1 billion for 2023. Net cash from operations is projected to be $600-$800 million for the year.
Price Performance
Shares of Albemarle have lost 53.9% in the past year compared with a 4.7% fall of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Albemarle currently carries a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for ANDE's current-year earnings has been revised 3.3% upward in the past 60 days. Andersons beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4% on average. ANDE shares have rallied around 38.9% in a year.
The consensus estimate for CRS’s current fiscal year earnings is pegged at $3.57, indicating year-over-year growth of 213.2%. CRS beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 14.3%. The company’s shares have surged 82.2% in the past year.
The consensus estimate for Linde’s current fiscal year earnings is pegged at $14.08, indicating year-over-year growth of 14.6%. LIN beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 5.7%. The company’s shares have rallied 31.5% in the past year.
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Albemarle's (ALB) Q3 Earnings and Revenues Lag Estimates
Albemarle Corporation (ALB - Free Report) logged a profit of $302.5 million or $2.57 per share in the third quarter of 2023, down from a profit of $897.2 million or $7.61 per share a year ago.
Adjusted earnings in the reported quarter came in at $2.74 per share, lagging the Zacks Consensus Estimate of $3.70.
Revenues climbed roughly 10.5% year over year to $2,310.6 million in the quarter. However, the metric missed the Zacks Consensus Estimate of $2,393.1 million. The top line was driven by increased volumes in Energy Storage and higher pricing in Ketjen.
Albemarle Corporation Price, Consensus and EPS Surprise
Albemarle Corporation price-consensus-eps-surprise-chart | Albemarle Corporation Quote
Segment Highlights
Sales from the Energy Storage unit surged around 20% year over year to $1,697.2 million. It fell short of the consensus estimate of $1,723.2 million. Sales were boosted by higher volumes linked to the La Negra III/IV expansion project in Chile, output from the processing facility in Qinzhou, China, and increased tolling volumes in response to the growing demand from customers.
The Specialties segment recorded sales of $352.7 million, down around 20% year over year. It was below the consensus estimate of $385.1 million. Sales were impacted by 7% lower volumes and a 13% decline in pricing.
The Ketjen unit recorded revenues of $260.7 million in the reported quarter, up roughly 10.6% year over year. It was below the consensus estimate of $277.5 million. Sales were aided by higher prices, especially from fluid catalytic cracking and clean fuel technologies.
Financial Position
Albemarle ended the quarter with cash and cash equivalents of roughly $1,601.7 million, up around 16% year over year. Long-term debt was around $3,496 million, up around 12% year over year.
Outlook
Albemarle has revised its 2023 net sales and adjusted EBITDA outlook based on the assumption that recent lithium market pricing will persist throughout the year. The company anticipates net sales in the range of $9.5-$9.8 billion, down from the previous range of $10.4-$11.5 billion. This updated forecast reflects a projected net sales increase of 30% to 35% over the prior year, primarily attributed to the 30% to 35% volumetric growth in Energy Storage driven by new mining and conversion capacity. The adjusted EBITDA for the year is now projected to be in the range of $3.2-$3.4 billion, as opposed to the earlier estimate of $3.8-$4.4 billion.
Albemarle expects adjusted earnings per share for 2023 in the band of $21.50-$23.50, down from its earlier view of $25.00-$29.50.
The company anticipates capital expenditures of $1.9-$2.1 billion for 2023. Net cash from operations is projected to be $600-$800 million for the year.
Price Performance
Shares of Albemarle have lost 53.9% in the past year compared with a 4.7% fall of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Albemarle currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are The Andersons Inc. (ANDE - Free Report) and Carpenter Technology Corporation (CRS - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) and Linde plc (LIN - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ANDE's current-year earnings has been revised 3.3% upward in the past 60 days. Andersons beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4% on average. ANDE shares have rallied around 38.9% in a year.
The consensus estimate for CRS’s current fiscal year earnings is pegged at $3.57, indicating year-over-year growth of 213.2%. CRS beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 14.3%. The company’s shares have surged 82.2% in the past year.
The consensus estimate for Linde’s current fiscal year earnings is pegged at $14.08, indicating year-over-year growth of 14.6%. LIN beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 5.7%. The company’s shares have rallied 31.5% in the past year.