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The company beat the Zacks Consensus Estimate for earnings in two of the trailing four quarters while missing twice. In this timeframe, it delivered an earnings surprise of 26.7%, on average. It posted a negative earnings surprise of roughly 25.7% in the last reported quarter. ALB is likely to have benefited from higher lithium volumes and its cost and productivity actions in the second quarter amid headwinds from softer lithium market prices.
Albemarle’s shares have lost 56.3% over a year compared with a 12% decline 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 $1,401.1 million, reflecting a decline of around 40.9% from the year-ago quarter.
The consensus estimate for net sales for the Energy Storage unit for the second quarter is pegged at $822.6 million, reflecting a year-over-year decline of 53%.
The Zacks Consensus Estimate for net sale for the Specialties unit is pinned at $309.9 million, suggesting a year-over-year decrease of 16.5%.
The Zacks Consensus Estimate for net sales for the Ketjen unit stands at $259.6 million, indicating a year-over-year rise of 10%.
Some Factors to Watch For
Albemarle is likely to have benefited from higher volumes in its lithium business in the quarter to be reported. Healthy customer demand, capacity expansion and plant productivity improvements are expected to have supported volumes. The La Negra III/IV expansion in Chile and and the processing plant in Qinzhou, China are likely to have contributed to volumes. Albemarle, on its first-quarter call, 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.
Moreover, the benefits of ALB’s cost-saving, pricing and productivity initiatives are expected to get reflected in the June quarter. Its cost and productivity actions are expected to have supported margins in the quarter. Efforts to drive operating efficiency and improve the utilization of raw materials are likely to have aided the company’s performance.
However, weaker lithium market prices are likely to have impacted the company’s performance. Lithium prices have declined amid slowing demand growth for electric vehicles, inventory glut and increased supply.
The company’s Specialties unit is likely to have faced headwinds from demand weakness in the quarter to be reported. The segment faces demand headwinds in the consumer electronics market. The demand weakness is expected to have continued in the second quarter.
The results in the Ketjen unit are likely to have been aided by higher volumes and prices. The strength in clean fuel technology and higher refinery utilization are expected to have aided volumes in this segment.
Our proven model does not conclusively predict an earnings beat for ALB 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 -7.60%. The Zacks Consensus Estimate for earnings for the second quarter is currently pegged at 53 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 #4 (Sell).
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
The consensus estimate for AEM’s earnings for the second quarter is currently pegged at 89 cents.
ATI Inc. (ATI - Free Report) , slated to release earnings on Aug 6, has an Earnings ESP of +3.50% and carries a Zacks Rank #3 at present.
The consensus mark for ATI’s second-quarter earnings is currently pegged at 58 cents.
Kinross Gold Corporation (KGC - Free Report) , scheduled to release second-quarter earnings on Jul 31, has an Earnings ESP of +8.04%.
The Zacks Consensus Estimate for Kinross Gold's earnings for the second quarter is currently pegged at 13 cents. KGC currently carries a Zacks Rank #2.
Image: Bigstock
Albemarle (ALB) to Report Q2 Earnings: What's in the Cards?
Albemarle Corporation (ALB - Free Report) will release second-quarter 2024 results after the closing bell on Jul 31.
The company beat the Zacks Consensus Estimate for earnings in two of the trailing four quarters while missing twice. In this timeframe, it delivered an earnings surprise of 26.7%, on average. It posted a negative earnings surprise of roughly 25.7% in the last reported quarter. ALB is likely to have benefited from higher lithium volumes and its cost and productivity actions in the second quarter amid headwinds from softer lithium market prices.
Albemarle’s shares have lost 56.3% over a year compared with a 12% decline 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 $1,401.1 million, reflecting a decline of around 40.9% from the year-ago quarter.
The consensus estimate for net sales for the Energy Storage unit for the second quarter is pegged at $822.6 million, reflecting a year-over-year decline of 53%.
The Zacks Consensus Estimate for net sale for the Specialties unit is pinned at $309.9 million, suggesting a year-over-year decrease of 16.5%.
The Zacks Consensus Estimate for net sales for the Ketjen unit stands at $259.6 million, indicating a year-over-year rise of 10%.
Some Factors to Watch For
Albemarle is likely to have benefited from higher volumes in its lithium business in the quarter to be reported. Healthy customer demand, capacity expansion and plant productivity improvements are expected to have supported volumes. The La Negra III/IV expansion in Chile and and the processing plant in Qinzhou, China are likely to have contributed to volumes. Albemarle, on its first-quarter call, 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.
Moreover, the benefits of ALB’s cost-saving, pricing and productivity initiatives are expected to get reflected in the June quarter. Its cost and productivity actions are expected to have supported margins in the quarter. Efforts to drive operating efficiency and improve the utilization of raw materials are likely to have aided the company’s performance.
However, weaker lithium market prices are likely to have impacted the company’s performance. Lithium prices have declined amid slowing demand growth for electric vehicles, inventory glut and increased supply.
The company’s Specialties unit is likely to have faced headwinds from demand weakness in the quarter to be reported. The segment faces demand headwinds in the consumer electronics market. The demand weakness is expected to have continued in the second quarter.
The results in the Ketjen unit are likely to have been aided by higher volumes and prices. The strength in clean fuel technology and higher refinery utilization are expected to have aided volumes in this segment.
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 ALB 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 -7.60%. The Zacks Consensus Estimate for earnings for the second quarter is currently pegged at 53 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 #4 (Sell).
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Agnico Eagle Mines Limited (AEM - Free Report) , scheduled to release earnings on Jul 31, has an Earnings ESP of +4.86% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for AEM’s earnings for the second quarter is currently pegged at 89 cents.
ATI Inc. (ATI - Free Report) , slated to release earnings on Aug 6, has an Earnings ESP of +3.50% and carries a Zacks Rank #3 at present.
The consensus mark for ATI’s second-quarter earnings is currently pegged at 58 cents.
Kinross Gold Corporation (KGC - Free Report) , scheduled to release second-quarter earnings on Jul 31, has an Earnings ESP of +8.04%.
The Zacks Consensus Estimate for Kinross Gold's earnings for the second quarter is currently pegged at 13 cents. KGC currently carries a Zacks Rank #2.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.