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The company beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters while missing once. In this timeframe, it delivered an earnings surprise of 45.4%, on average. It posted an earnings surprise of roughly 86.9% in the last reported quarter. ALB is likely to have benefited from higher lithium volumes and its cost and productivity actions in the first quarter amid headwinds from softer lithium market prices.
Albemarle’s shares have lost 29.1% over a year compared with a 7.2% 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 $1,407.6 million, reflecting a decline of around 45.5% from the year-ago quarter.
The consensus estimate for net sales for the Energy Storage unit for the first quarter is pegged at $720.1 million, reflecting a sequential decline of 57%.
The Zacks Consensus Estimate for net sale for the Specialties unit is pinned at $362.7 million, suggesting a sequential rise of 6.8%.
The Zacks Consensus Estimate for net sales for the Ketjen unit for the first quarter stands at $253.4 million, indicating a sequential decline of 25.8%.
Some Factors to Watch For
Albemarle is likely to have benefited from higher volumes in its lithium business in the quarter to be reported. Higher customer demand, capacity expansion and plant productivity improvements are expected to have supported volumes. The La Negra III/IV expansion in Chile and higher tolling volumes are likely to have contributed to volumes. 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.
Benefits of the company’s cost-saving, pricing and productivity initiatives are expected to get reflected in the first 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 ALB’s performance.
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 consumer electronics and elastomers markets. The demand weakness is expected to have continued in the first quarter. The results in the Ketjen unit are likely to have been aided by higher volumes and prices.
Our proven model does not conclusively predict an earnings beat for Albemarle 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 -17.92%. The Zacks Consensus Estimate for the first quarter is currently pegged at 36 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 #3.
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 IOSP’s earnings for the first quarter is currently pegged at $1.64.
Kinross Gold Corporation (KGC - Free Report) , slated to release earnings on May 7, has an Earnings ESP of +4.49% and carries a Zacks Rank #3 at present.
The consensus mark for KGC’s first-quarter earnings is currently pegged at 6 cents.
Ingevity Corporation (NGVT - Free Report) , scheduled to release first-quarter earnings on May 1, has an Earnings ESP of +39.29%.
The Zacks Consensus Estimate for NGVT's earnings for the first quarter is currently pegged at 37 cents. NGVT currently carries a Zacks Rank #1.
Image: Bigstock
Albemarle (ALB) to Report Q1 Earnings: What's in the Cards?
Albemarle Corporation (ALB - Free Report) will release first-quarter 2024 results after the closing bell on May 1.
The company beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters while missing once. In this timeframe, it delivered an earnings surprise of 45.4%, on average. It posted an earnings surprise of roughly 86.9% in the last reported quarter. ALB is likely to have benefited from higher lithium volumes and its cost and productivity actions in the first quarter amid headwinds from softer lithium market prices.
Albemarle’s shares have lost 29.1% over a year compared with a 7.2% 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 $1,407.6 million, reflecting a decline of around 45.5% from the year-ago quarter.
The consensus estimate for net sales for the Energy Storage unit for the first quarter is pegged at $720.1 million, reflecting a sequential decline of 57%.
The Zacks Consensus Estimate for net sale for the Specialties unit is pinned at $362.7 million, suggesting a sequential rise of 6.8%.
The Zacks Consensus Estimate for net sales for the Ketjen unit for the first quarter stands at $253.4 million, indicating a sequential decline of 25.8%.
Some Factors to Watch For
Albemarle is likely to have benefited from higher volumes in its lithium business in the quarter to be reported. Higher customer demand, capacity expansion and plant productivity improvements are expected to have supported volumes. The La Negra III/IV expansion in Chile and higher tolling volumes are likely to have contributed to volumes. 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.
Benefits of the company’s cost-saving, pricing and productivity initiatives are expected to get reflected in the first 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 ALB’s performance.
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 consumer electronics and elastomers markets. The demand weakness is expected to have continued in the first quarter. The results in the Ketjen unit are likely to have been aided by higher volumes and prices.
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 Albemarle 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 -17.92%. The Zacks Consensus Estimate for the first quarter is currently pegged at 36 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 #3.
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:
Innospec Inc. (IOSP - Free Report) , scheduled to release earnings on May 9, has an Earnings ESP of +2.44% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for IOSP’s earnings for the first quarter is currently pegged at $1.64.
Kinross Gold Corporation (KGC - Free Report) , slated to release earnings on May 7, has an Earnings ESP of +4.49% and carries a Zacks Rank #3 at present.
The consensus mark for KGC’s first-quarter earnings is currently pegged at 6 cents.
Ingevity Corporation (NGVT - Free Report) , scheduled to release first-quarter earnings on May 1, has an Earnings ESP of +39.29%.
The Zacks Consensus Estimate for NGVT's earnings for the first quarter is currently pegged at 37 cents. NGVT currently carries a Zacks Rank #1.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.