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Albemarle (ALB) Up 7.8% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Albemarle (ALB - Free Report) . Shares have added about 7.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Albemarle due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Albemarle Tops Earnings and Revenue Estimates in Q4
Albemarle 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision. The consensus estimate has shifted -12.55% due to these changes.
VGM Scores
At this time, Albemarle has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Albemarle has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Albemarle (ALB) Up 7.8% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Albemarle (ALB - Free Report) . Shares have added about 7.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Albemarle due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Albemarle Tops Earnings and Revenue Estimates in Q4
Albemarle 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision. The consensus estimate has shifted -12.55% due to these changes.
VGM Scores
At this time, Albemarle has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Albemarle has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.