Back to top

Image: Bigstock

Albemarle's (ALB) Q4 Earnings & Revenues Top Estimates

Read MoreHide Full Article

Albemarle Corporation (ALB - Free Report) swung to a loss of $218.4 million, or $1.95 per share in the fourth quarter of 2017 from a profit of $602.1 million, or $5.30 per a year ago. The bottom line in the reported quarter was hurt by a $366.9 million of income tax expense associated with the new U.S. tax reform laws.

Barring one-time items, adjusted earnings for the reported quarter were $1.34 per share, beating the Zacks Consensus Estimate of $1.21.

Revenues rose around 23% year over year to $857.8 million in the reported quarter. It also topped the Zacks Consensus Estimate of $791.5 million. Sales in the quarter were aided by favorable impacts of pricing and higher sales volume across the company’s segments as well as favorable currency impacts.

Albemarle Corporation Price, Consensus and EPS Surprise

 

Albemarle Corporation Price, Consensus and EPS Surprise | Albemarle Corporation Quote

FY17 Results

For 2017, profit was $54.9 million or 49 cents per share, down from with $643.7 million or $5.68 per share logged a year ago. Adjusted earnings per share for the year were $4.59.

Revenues for the full year rose roughly 15% year over year to roughly $3,072 million, driven by higher sales volumes in all businesses and favorable pricing.

Segment Highlights

Sales from the Lithium and Advanced Materials unit jumped 30% year over year to $362.4 million in the reported quarter, supported by favorable pricing, higher sales volumes and favorable currency impacts.  

The Bromine Specialties segment raked in sales of $219.1 million, up 13% year over year, driven by higher sales volumes and favorable pricing.

The Refining Solutions unit reported revenues of $238.4 million in the reported quarter, up 24% year over year. The division’s sales were supported by favorable pricing, higher sales volumes and favorable currency impacts.  

Financial Position

Albemarle ended the quarter with cash and cash equivalents of roughly $1,137.3 million, down 50% year over year. Long-term debt was $1,415.4 million, down around 33% year over year.

Outlook

Albemarle sees adjusted earnings per share for 2018 in the band of $5.00 and $5.40, a year-over-year increase of 9%-18%.

The company also envisions net sales for 2018 to be between $3.2 billion and $3.4 billion. Adjusted EBITDA has been forecast in the range of $955 million to $1,005 million.

Price Performance

Albemarle has underperformed the industry it belongs to over a year. The company’s shares have gained around 8.6% over this period, compared with roughly 17.5% gain recorded by the industry.



 

Zacks Rank & Stocks to Consider

Albemarle currently carries a Zacks Rank #4 (Sell) .

Better-ranked companies in the basic materials space include Olympic Steel, Inc. (ZEUS - Free Report) , Methanex Corporation (MEOH - Free Report) and LyondellBasell Industries N.V. (LYB - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Olympic Steel has an expected long-term earnings growth rate of 7.5%. Its shares rallied 34% over the past six months.

Methanex has an expected long-term earnings growth rate of 15%. Its shares have gained roughly 22% over the past six months.

LyondellBasell has an expected long-term earnings growth rate of 9%. Its shares have rallied around 23% over the past six months.

Wall Street’s Next Amazon

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.

Click for details >>
 

Published in