Albemarle Corporation (ALB - Free Report) recorded a profit of $84.6 million or 79 cents per share in the fourth quarter of 2020, down from $90.4 million or 85 cents per share it earned a year ago.
Adjusted earnings for the reported quarter were $1.17 per share, down from $1.73 a year ago. It, however, topped the Zacks Consensus Estimate of $1.15.
Revenues fell roughly 11% year over year to $879.1 million in the quarter. It surpassed the Zacks Consensus Estimate of $876.2 million. Lower sales across Catalysts and Lithium segments were partly offset by gains in Bromine and other segments. The company also benefited from its cost-savings initiatives.
Segment Highlights
Sales from the Lithium unit dropped around 13% year over year to $358.6 million in the reported quarter, hurt by lower contract and market pricing. Adjusted EBITDA was down roughly 13% year over year to $122.1 million.
The Bromine Specialties segment recorded sales of $263.4 million, up around 8% year over year. Sales were supported by a recovery in demand following the coronavirus-led slowdown. Adjusted EBITDA was $87.9 million, up around 10% year over year.
The Catalysts unit recorded revenues of $195.7 million in the reported quarter, down around 31% year over year. Adjusted EBITDA was $22.1 million, down roughly 71% year over year. The company saw lower volumes in Fluid Catalytic Cracking on a year-over-year basis due to reduced transportation fuel consumption. Hydroprocessing Catalysts volumes also fell in the quarter, impacted by reduced fuel demand.
FY20 Results
Earnings (as reported) for full-year 2020 were $3.52 per share, compared with earnings of $5.02 per share a year ago. Revenues dropped roughly 13% year over year to $3,128.9 million for the full year.
Financial Position
Albemarle ended 2020 with cash and cash equivalents of roughly $746.7 million, up 22% year over year. Long-term debt was $2,767.4 million, down around 3% year over year.
Cash flow from operations was $798.9 million for full-year 2020, up around 11% year over year.
Outlook
Moving ahead, Albemarle expects its performance for full-year 2021 to improve modestly on a year-over-year basis on a sustained recovery in global economic activities.
The company expects net sales for 2021 between $3.2 billion and $3.3 billion. Moreover, adjusted EBITDA for the year has been forecast in the range of $810-$860 million. Albemarle also sees adjusted earnings per share in the band of $3.25 to $3.65 for 2021.
Albemarle also realized around $80 million of sustainable cost savings in 2020. It expects sustainable cost savings to reach a run-rate of more than $120 million by 2021.
Price Performance
Albemarle’s shares are up 77.6% over a year compared with a 20.4% rise of its industry.
Zacks Rank & Key Picks
Albemarle currently carries a Zacks Rank #3 (Hold)
Better-ranked stocks worth considering in the basic materials space include Impala Platinum Holdings Limited (IMPUY - Free Report) , Fortescue Metals Group Limited (FSUGY - Free Report) and Gold Fields Limited (GFI - Free Report) .
Impala Platinum has an expected earnings growth rate of 195.9% for the current fiscal. The company’s shares have rallied around 43% in the past year. It currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Fortescue has a projected earnings growth rate of 78.4% for the current fiscal. The company’s shares have surged around 153% in a year. It currently sports a Zacks Rank #2 (Buy).
Gold Fields has a projected earnings growth rate of 202.4% for the current year. The company’s shares are up around 28% in a year. It currently carries a Zacks Rank #2.
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Albemarle Corporation (ALB - Free Report) recorded a profit of $84.6 million or 79 cents per share in the fourth quarter of 2020, down from $90.4 million or 85 cents per share it earned a year ago.
Adjusted earnings for the reported quarter were $1.17 per share, down from $1.73 a year ago. It, however, topped the Zacks Consensus Estimate of $1.15.
Revenues fell roughly 11% year over year to $879.1 million in the quarter. It surpassed the Zacks Consensus Estimate of $876.2 million. Lower sales across Catalysts and Lithium segments were partly offset by gains in Bromine and other segments. The company also benefited from its cost-savings initiatives.
Segment Highlights
Sales from the Lithium unit dropped around 13% year over year to $358.6 million in the reported quarter, hurt by lower contract and market pricing. Adjusted EBITDA was down roughly 13% year over year to $122.1 million.
The Bromine Specialties segment recorded sales of $263.4 million, up around 8% year over year. Sales were supported by a recovery in demand following the coronavirus-led slowdown. Adjusted EBITDA was $87.9 million, up around 10% year over year.
The Catalysts unit recorded revenues of $195.7 million in the reported quarter, down around 31% year over year. Adjusted EBITDA was $22.1 million, down roughly 71% year over year. The company saw lower volumes in Fluid Catalytic Cracking on a year-over-year basis due to reduced transportation fuel consumption. Hydroprocessing Catalysts volumes also fell in the quarter, impacted by reduced fuel demand.
FY20 Results
Earnings (as reported) for full-year 2020 were $3.52 per share, compared with earnings of $5.02 per share a year ago. Revenues dropped roughly 13% year over year to $3,128.9 million for the full year.
Financial Position
Albemarle ended 2020 with cash and cash equivalents of roughly $746.7 million, up 22% year over year. Long-term debt was $2,767.4 million, down around 3% year over year.
Cash flow from operations was $798.9 million for full-year 2020, up around 11% year over year.
Outlook
Moving ahead, Albemarle expects its performance for full-year 2021 to improve modestly on a year-over-year basis on a sustained recovery in global economic activities.
The company expects net sales for 2021 between $3.2 billion and $3.3 billion. Moreover, adjusted EBITDA for the year has been forecast in the range of $810-$860 million. Albemarle also sees adjusted earnings per share in the band of $3.25 to $3.65 for 2021.
Albemarle also realized around $80 million of sustainable cost savings in 2020. It expects sustainable cost savings to reach a run-rate of more than $120 million by 2021.
Price Performance
Albemarle’s shares are up 77.6% over a year compared with a 20.4% rise of its industry.
Zacks Rank & Key Picks
Albemarle currently carries a Zacks Rank #3 (Hold)
Better-ranked stocks worth considering in the basic materials space include Impala Platinum Holdings Limited (IMPUY - Free Report) , Fortescue Metals Group Limited (FSUGY - Free Report) and Gold Fields Limited (GFI - Free Report) .
Impala Platinum has an expected earnings growth rate of 195.9% for the current fiscal. The company’s shares have rallied around 43% in the past year. It currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Fortescue has a projected earnings growth rate of 78.4% for the current fiscal. The company’s shares have surged around 153% in a year. It currently sports a Zacks Rank #2 (Buy).
Gold Fields has a projected earnings growth rate of 202.4% for the current year. The company’s shares are up around 28% in a year. It currently carries a Zacks Rank #2.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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