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Albemarle (ALB) Down 9.6% Since Earnings Report: Can It Rebound?
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More than a month has gone by since the last earnings report for Albemarle Corporation (ALB - Free Report) . Shares have lost about 9.6% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Albemarle's Q3 Earnings & Revenues Top, Ups View
Albemarle recorded profit of $118.7 million, or $1.06 per share for the third quarter of 2017, down from $128.2 million, or $1.13 per a year ago. The bottom line in the reported quarter was unfavorably impacted by Hurricane Harvey.
Barring one-time items, adjusted earnings for the reported quarter were $1.08 per share, beating the Zacks Consensus Estimate of $1.07.
Revenues rose around 15% year over year to $754.9 million in the reported quarter. It also topped the Zacks Consensus Estimate of $737 million. Sales in the quarter were aided by favorable impacts of pricing and higher sales volume in Lithium and Advanced Materials and Bromine segments as well as favorable currency impacts.
Segment Highlights
Sales from the Lithium and Advanced Materials unit jumped 42.9% year over year to $343.6 million in the reported quarter, supported by favorable pricing, higher sales volumes and favorable currency impacts.
The Bromine Specialties segment raked in sales of $212.9 million, up 9.5% year over year, driven by higher sales volumes related to flame retardants and favorable pricing.
The Refining Solutions unit reported revenues of $170.3 million in the reported quarter, down 10.6% year over year. The division’s sales were affected by reduced sales volumes and unfavorable pricing, partly offset favorable currency impacts.
Financial Position
Albemarle ended the quarter with cash and cash equivalents of roughly $1,045.3 million, a nearly five-fold year-over-year increase. Long-term debt was $1,407.2 million, down around 54% year over year.
Outlook
Albemarle raised its guidance for 2017. The company now sees full-year net sales of between $3 billion and $3.05 billion (compared with prior view of $2.90 billion and $3.05 billion), adjusted earnings per share of between $4.40 and $4.50 (compared with prior view of $4.20 and $4.40) and adjusted EBITDA of $860-$875 million (compared with $835-$875 million expected earlier).
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimates. There have been four revisions higher for the current quarter.
At this time, Albemarle's stock has a poor Growth Score of F, however its Momentum is doing a bit better with a C. The stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stocks has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is suitable solely for momentum investors.
Outlook
Estimates have been trending upward for the stock. The magnitude of these revisions also looks promising. It comes with little surprise that the stock has a Zacks Rank #2 (Buy). We are expecting an above average return from the stock in the next few months.
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Albemarle (ALB) Down 9.6% Since Earnings Report: Can It Rebound?
More than a month has gone by since the last earnings report for Albemarle Corporation (ALB - Free Report) . Shares have lost about 9.6% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Albemarle's Q3 Earnings & Revenues Top, Ups View
Albemarle recorded profit of $118.7 million, or $1.06 per share for the third quarter of 2017, down from $128.2 million, or $1.13 per a year ago. The bottom line in the reported quarter was unfavorably impacted by Hurricane Harvey.
Barring one-time items, adjusted earnings for the reported quarter were $1.08 per share, beating the Zacks Consensus Estimate of $1.07.
Revenues rose around 15% year over year to $754.9 million in the reported quarter. It also topped the Zacks Consensus Estimate of $737 million. Sales in the quarter were aided by favorable impacts of pricing and higher sales volume in Lithium and Advanced Materials and Bromine segments as well as favorable currency impacts.
Segment Highlights
Sales from the Lithium and Advanced Materials unit jumped 42.9% year over year to $343.6 million in the reported quarter, supported by favorable pricing, higher sales volumes and favorable currency impacts.
The Bromine Specialties segment raked in sales of $212.9 million, up 9.5% year over year, driven by higher sales volumes related to flame retardants and favorable pricing.
The Refining Solutions unit reported revenues of $170.3 million in the reported quarter, down 10.6% year over year. The division’s sales were affected by reduced sales volumes and unfavorable pricing, partly offset favorable currency impacts.
Financial Position
Albemarle ended the quarter with cash and cash equivalents of roughly $1,045.3 million, a nearly five-fold year-over-year increase. Long-term debt was $1,407.2 million, down around 54% year over year.
Outlook
Albemarle raised its guidance for 2017. The company now sees full-year net sales of between $3 billion and $3.05 billion (compared with prior view of $2.90 billion and $3.05 billion), adjusted earnings per share of between $4.40 and $4.50 (compared with prior view of $4.20 and $4.40) and adjusted EBITDA of $860-$875 million (compared with $835-$875 million expected earlier).
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimates. There have been four revisions higher for the current quarter.
Albemarle Corporation Price and Consensus
Albemarle Corporation Price and Consensus | Albemarle Corporation Quote
VGM Scores
At this time, Albemarle's stock has a poor Growth Score of F, however its Momentum is doing a bit better with a C. The stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stocks has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is suitable solely for momentum investors.
Outlook
Estimates have been trending upward for the stock. The magnitude of these revisions also looks promising. It comes with little surprise that the stock has a Zacks Rank #2 (Buy). We are expecting an above average return from the stock in the next few months.