We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Albemarle (ALB) Down 1.2% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
A month has gone by since the last earnings report for Albemarle (ALB - Free Report) . Shares have lost about 1.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Albemarle due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Albemarle's Earnings Miss Estimates in Q1, Revenues Beat
Albemarle logged a loss of 8 cents per share in the first quarter of 2024. In the year-ago quarter, the company had reported earnings of $10.51 per share.
Adjusted earnings in the reported quarter came in at 26 cents per share, missing the Zacks Consensus Estimate of 35 cents.
Revenues fell roughly 47% year over year to roughly $1.36 billion in the quarter. However, the metric beat the Zacks Consensus Estimate of $1.31 billion. The top line was hurt by lower prices in the Energy Storage unit. The company’s results were impacted by lower lithium market pricing in the quarter.
Segment Highlights
Sales from the Energy Storage unit fell around 59% year over year to $800.9 million. It beat the consensus estimate of $720.1 million. The decline in sales was attributed to reduced pricing. However, sales volumes increased partly due to the ramp of lithium projects, including the La Negra III/IV expansion in Chile and the processing plant in Qinzhou, China.
The Specialties segment recorded sales of $316.1 million, down around 25% year over year. It was below the consensus estimate of $362.7 million. Lower volumes and a decline in pricing impacted sales.
The Ketjen unit recorded revenues of $243.8 million in the reported quarter, up roughly 12% year over year. It was below the consensus estimate of $253.4 million. Higher prices and higher volumes aided sales.
Financial Position
Albemarle ended the quarter with cash and cash equivalents of roughly $2.06 billion, up around 131% sequentially. Long-term debt was around $3.5 billion, essentially flat sequentially.
Outlook
Albemarle said that volume growth in Energy Storage is trending toward the high end of its earlier provided 10-20% year-over-year growth outlook for 2024.
The company expects net sales for its Specialties segment in the range of $1.3-$1.5 billion, with an adjusted EBITDA of $270-$330 million. For the Ketjen segment, net sales are projected to be $1-$1.2 billion, with an adjusted EBITDA of $130-$150 million.
Capital expenditures for 2024 are forecast to be in the range of $1.6-$1.8 billion, while depreciation and amortization are projected to be in the band of $580-$660 million. Corporate costs are projected in the range of $120-$150 million while interest and financing expenses are expected to be between $180 million and $210 million.
The company is on track to deliver more than $280 million in productivity benefits in 2024.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 59.71% due to these changes.
VGM Scores
At this time, Albemarle has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Albemarle has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Albemarle is part of the Zacks Chemical - Diversified industry. Over the past month, Air Products and Chemicals (APD - Free Report) , a stock from the same industry, has gained 6.9%. The company reported its results for the quarter ended March 2024 more than a month ago.
Air Products and Chemicals reported revenues of $2.93 billion in the last reported quarter, representing a year-over-year change of -8.4%. EPS of $2.85 for the same period compares with $2.74 a year ago.
Air Products and Chemicals is expected to post earnings of $3.04 per share for the current quarter, representing a year-over-year change of +2%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.6%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Air Products and Chemicals. Also, the stock has a VGM Score of F.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Albemarle (ALB) Down 1.2% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Albemarle (ALB - Free Report) . Shares have lost about 1.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Albemarle due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Albemarle's Earnings Miss Estimates in Q1, Revenues Beat
Albemarle logged a loss of 8 cents per share in the first quarter of 2024. In the year-ago quarter, the company had reported earnings of $10.51 per share.
Adjusted earnings in the reported quarter came in at 26 cents per share, missing the Zacks Consensus Estimate of 35 cents.
Revenues fell roughly 47% year over year to roughly $1.36 billion in the quarter. However, the metric beat the Zacks Consensus Estimate of $1.31 billion. The top line was hurt by lower prices in the Energy Storage unit. The company’s results were impacted by lower lithium market pricing in the quarter.
Segment Highlights
Sales from the Energy Storage unit fell around 59% year over year to $800.9 million. It beat the consensus estimate of $720.1 million. The decline in sales was attributed to reduced pricing. However, sales volumes increased partly due to the ramp of lithium projects, including the La Negra III/IV expansion in Chile and the processing plant in Qinzhou, China.
The Specialties segment recorded sales of $316.1 million, down around 25% year over year. It was below the consensus estimate of $362.7 million. Lower volumes and a decline in pricing impacted sales.
The Ketjen unit recorded revenues of $243.8 million in the reported quarter, up roughly 12% year over year. It was below the consensus estimate of $253.4 million. Higher prices and higher volumes aided sales.
Financial Position
Albemarle ended the quarter with cash and cash equivalents of roughly $2.06 billion, up around 131% sequentially. Long-term debt was around $3.5 billion, essentially flat sequentially.
Outlook
Albemarle said that volume growth in Energy Storage is trending toward the high end of its earlier provided 10-20% year-over-year growth outlook for 2024.
The company expects net sales for its Specialties segment in the range of $1.3-$1.5 billion, with an adjusted EBITDA of $270-$330 million. For the Ketjen segment, net sales are projected to be $1-$1.2 billion, with an adjusted EBITDA of $130-$150 million.
Capital expenditures for 2024 are forecast to be in the range of $1.6-$1.8 billion, while depreciation and amortization are projected to be in the band of $580-$660 million. Corporate costs are projected in the range of $120-$150 million while interest and financing expenses are expected to be between $180 million and $210 million.
The company is on track to deliver more than $280 million in productivity benefits in 2024.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 59.71% due to these changes.
VGM Scores
At this time, Albemarle has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Albemarle has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Albemarle is part of the Zacks Chemical - Diversified industry. Over the past month, Air Products and Chemicals (APD - Free Report) , a stock from the same industry, has gained 6.9%. The company reported its results for the quarter ended March 2024 more than a month ago.
Air Products and Chemicals reported revenues of $2.93 billion in the last reported quarter, representing a year-over-year change of -8.4%. EPS of $2.85 for the same period compares with $2.74 a year ago.
Air Products and Chemicals is expected to post earnings of $3.04 per share for the current quarter, representing a year-over-year change of +2%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.6%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Air Products and Chemicals. Also, the stock has a VGM Score of F.