Albemarle Corporation (ALB - Free Report) logged a profit of $1,132.4 million or $9.60 per share in the fourth quarter of 2022 against a loss of $3.8 million or 3 cents per share a year ago.
Adjusted earnings in the reported quarter were $8.62 per share, topping the Zacks Consensus Estimate of $8.46.
Revenues climbed roughly 193% year over year to $2,621 million in the quarter, However, it trailed the Zacks Consensus Estimate of $2,626.5 million. The top line was driven by higher lithium pricing and increased volumes.
Segment Highlights
Sales from the Lithium unit surged 410% year over year to $2,066 million. Sales were driven by higher pricing (up 328% net of currency) associated with renegotiated contracts and higher market pricing. Volumes rose 82% in the quarter on the back of the La Negra III/IV expansion in Chile and increased tolling volumes to meet rising customer demand.
The Bromine Specialties segment recorded sales of $319.4 million, up 10% year over year. Sales were supported by a 9% (net of currency) rise in pricing and 1% higher volume.
The Catalysts unit recorded revenues of $235.5 million in the reported quarter, up around 18% year over year. Volumes rose 8% while pricing increased 10% (net of currency).
FY22 Results
Earnings for full-year 2022 were $22.84 per share compared with $1.06 per share a year ago. Net sales more than doubled year over year to $7,320.1 million.
Financial Position
Albemarle ended 2022 with cash and cash equivalents of roughly $1,499,1 million, up more than three-fold year over year. Long-term debt was around $3,215 million, up around 60% year over year.
Cash flow from operations was $1,907.8 million for full-year 2022, up more than five-fold year over year.
Outlook
Albemarle expects net sales in the band of $11.3-$12.9 billion for 2023. It sees strength in lithium pricing and end-market demand to drive a 55-75% year-over-year rise in net sales in 2023. Adjusted EBITDA for the year is forecast to be $4.2-$5.1 billion.
Albemarle also sees adjusted earnings per share for 2023 in the band of $26.00-$33.00.
The company anticipates capital expenditures of $1.7-$1.9 billion for 2023. Net cash from operations is projected to be $2.1-$2.4 billion for the year.
Price Performance
Shares of Albemarle have gained 38.4% in the past year compared with an 8.3% rise of the industry.
Zacks Rank & Key Picks
Albemarle currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Steel Dynamics, Inc. (STLD - Free Report) , Commercial Metals Company (CMC - Free Report) and Nucor Corporation (NUE - Free Report) .
Steel Dynamics currently sports a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for STLD's current-year earnings has been revised 22.3% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Steel Dynamics’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 11.3%, on average. STLD has rallied around 99% in a year.
Commercial Metals currently carries a Zacks Rank #1. The consensus estimate for CMC's current-year earnings has been revised 10% upward in the past 60 days.
Commercial Metals’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 16.7%, on average. CMC has gained around 56% in a year.
Nucor currently carries a Zacks Rank #1. The Zacks Consensus Estimate for NUE’s current-year earnings has been revised 12.9% upward in the past 60 days.
Nucor beat Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 7.7% on average. NUE’s shares have gained roughly 41% in the past year.
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Albemarle Corporation (ALB - Free Report) logged a profit of $1,132.4 million or $9.60 per share in the fourth quarter of 2022 against a loss of $3.8 million or 3 cents per share a year ago.
Adjusted earnings in the reported quarter were $8.62 per share, topping the Zacks Consensus Estimate of $8.46.
Revenues climbed roughly 193% year over year to $2,621 million in the quarter, However, it trailed the Zacks Consensus Estimate of $2,626.5 million. The top line was driven by higher lithium pricing and increased volumes.
Segment Highlights
Sales from the Lithium unit surged 410% year over year to $2,066 million. Sales were driven by higher pricing (up 328% net of currency) associated with renegotiated contracts and higher market pricing. Volumes rose 82% in the quarter on the back of the La Negra III/IV expansion in Chile and increased tolling volumes to meet rising customer demand.
The Bromine Specialties segment recorded sales of $319.4 million, up 10% year over year. Sales were supported by a 9% (net of currency) rise in pricing and 1% higher volume.
The Catalysts unit recorded revenues of $235.5 million in the reported quarter, up around 18% year over year. Volumes rose 8% while pricing increased 10% (net of currency).
FY22 Results
Earnings for full-year 2022 were $22.84 per share compared with $1.06 per share a year ago. Net sales more than doubled year over year to $7,320.1 million.
Financial Position
Albemarle ended 2022 with cash and cash equivalents of roughly $1,499,1 million, up more than three-fold year over year. Long-term debt was around $3,215 million, up around 60% year over year.
Cash flow from operations was $1,907.8 million for full-year 2022, up more than five-fold year over year.
Outlook
Albemarle expects net sales in the band of $11.3-$12.9 billion for 2023. It sees strength in lithium pricing and end-market demand to drive a 55-75% year-over-year rise in net sales in 2023. Adjusted EBITDA for the year is forecast to be $4.2-$5.1 billion.
Albemarle also sees adjusted earnings per share for 2023 in the band of $26.00-$33.00.
The company anticipates capital expenditures of $1.7-$1.9 billion for 2023. Net cash from operations is projected to be $2.1-$2.4 billion for the year.
Price Performance
Shares of Albemarle have gained 38.4% in the past year compared with an 8.3% rise of the industry.
Zacks Rank & Key Picks
Albemarle currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Steel Dynamics, Inc. (STLD - Free Report) , Commercial Metals Company (CMC - Free Report) and Nucor Corporation (NUE - Free Report) .
Steel Dynamics currently sports a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for STLD's current-year earnings has been revised 22.3% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Steel Dynamics’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 11.3%, on average. STLD has rallied around 99% in a year.
Commercial Metals currently carries a Zacks Rank #1. The consensus estimate for CMC's current-year earnings has been revised 10% upward in the past 60 days.
Commercial Metals’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 16.7%, on average. CMC has gained around 56% in a year.
Nucor currently carries a Zacks Rank #1. The Zacks Consensus Estimate for NUE’s current-year earnings has been revised 12.9% upward in the past 60 days.
Nucor beat Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 7.7% on average. NUE’s shares have gained roughly 41% in the past year.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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