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Albemarle's (ALB) Q4 Earnings and Revenues Top Estimates
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Albemarle Corporation (ALB - Free Report) logged a net loss of $3.8 million or 3 cents per share in the fourth quarter of 2021 against a profit of $84.6 million or 79 cents per share a year ago.
Adjusted earnings in the reported quarter were $1.01 per share, topping the Zacks Consensus Estimate of 96 cents.
Revenues rose roughly 2% year over year to $894.2 million in the quarter and surpassed the Zacks Consensus Estimate of $884.2 million. The top line was aided by higher sales from the company's Lithium and Bromine business segments.
Albemarle Corporation Price, Consensus and EPS Surprise
Sales from the Lithium unit rose around 13% year over year to $404.7 million in the reported quarter on the back of higher pricing which rose 18%. Volumes fell 5% in the quarter.
The Bromine Specialties segment recorded sales of $290.4 million, up around 10% year over year. Sales were supported by a 16% rise in pricing, offset by 6% lower volume. Tight market conditions led to strong demand and favorable pricing.
The Catalysts unit recorded revenues of $199.1 million in the reported quarter, up around 2% year over year, as higher pricing and favorable currency swings more than offset lower volumes.
FY21 Results
Earnings for full-year 2021 were $1.06 per share compared with $3.52 per share a year ago. Revenues rose roughly 6% year-over-year to $3,327.9 million for the full year.
Financial Position
Albemarle ended 2021 with cash and cash equivalents of roughly $439.3 million, down around 41% year over year. Long-term debt was $2,004.3 million, down around 28%.
Cash flow from operations was around $344.3 million for 2021, down around 57% year over year.
Outlook
Moving ahead, Albemarle expects its results across all business units to improve year over year in 2022. The company envisions net sales for 2022 to be between $4.2 billion and $4.5 billion. Albemarle also sees adjusted earnings per share for 2022 in the band of $5.65-$6.65. Adjusted EBITDA for the year is forecast to be $1.15-$1.3 billion.
The company expects capital expenditures to be higher than what it had previously planned this year. It anticipates capital expenditures of $1.3-1.5 billion for 2022. Net cash from operations is projected to be $400-$500 million.
Price Performance
Albemarle’s shares have rallied 42.8% in the past year compared with 11.3% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
Albemarle carries a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks worth considering in the basic materials space include Commercial Metals Company (CMC - Free Report) , Cabot Corporation (CBT - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Commercial Metals, sporting a Zacks Rank #1, has a projected earnings growth rate of 62% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 22.7% upward over the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 13.1%, on average. CMC has rallied around 59% in a year.
Cabot, carrying a Zacks Rank #1, has an expected earnings growth rate of 15.4% for the current fiscal year. CBT's consensus estimate for the current fiscal year has been revised 7.8% upward over the past 60 days.
Cabot beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 21.6%. CBT shares have gained around 53% in a year.
AdvanSix, carrying a Zacks Rank #2 (Buy), has an expected earnings growth rate of 7.4% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 3.2% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied around 51% in a year.
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Albemarle's (ALB) Q4 Earnings and Revenues Top Estimates
Albemarle Corporation (ALB - Free Report) logged a net loss of $3.8 million or 3 cents per share in the fourth quarter of 2021 against a profit of $84.6 million or 79 cents per share a year ago.
Adjusted earnings in the reported quarter were $1.01 per share, topping the Zacks Consensus Estimate of 96 cents.
Revenues rose roughly 2% year over year to $894.2 million in the quarter and surpassed the Zacks Consensus Estimate of $884.2 million. The top line was aided by higher sales from the company's Lithium and Bromine business segments.
Albemarle Corporation Price, Consensus and EPS Surprise
Albemarle Corporation price-consensus-eps-surprise-chart | Albemarle Corporation Quote
Segment Highlights
Sales from the Lithium unit rose around 13% year over year to $404.7 million in the reported quarter on the back of higher pricing which rose 18%. Volumes fell 5% in the quarter.
The Bromine Specialties segment recorded sales of $290.4 million, up around 10% year over year. Sales were supported by a 16% rise in pricing, offset by 6% lower volume. Tight market conditions led to strong demand and favorable pricing.
The Catalysts unit recorded revenues of $199.1 million in the reported quarter, up around 2% year over year, as higher pricing and favorable currency swings more than offset lower volumes.
FY21 Results
Earnings for full-year 2021 were $1.06 per share compared with $3.52 per share a year ago. Revenues rose roughly 6% year-over-year to $3,327.9 million for the full year.
Financial Position
Albemarle ended 2021 with cash and cash equivalents of roughly $439.3 million, down around 41% year over year. Long-term debt was $2,004.3 million, down around 28%.
Cash flow from operations was around $344.3 million for 2021, down around 57% year over year.
Outlook
Moving ahead, Albemarle expects its results across all business units to improve year over year in 2022. The company envisions net sales for 2022 to be between $4.2 billion and $4.5 billion. Albemarle also sees adjusted earnings per share for 2022 in the band of $5.65-$6.65. Adjusted EBITDA for the year is forecast to be $1.15-$1.3 billion.
The company expects capital expenditures to be higher than what it had previously planned this year. It anticipates capital expenditures of $1.3-1.5 billion for 2022. Net cash from operations is projected to be $400-$500 million.
Price Performance
Albemarle’s shares have rallied 42.8% in the past year compared with 11.3% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
Albemarle carries a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks worth considering in the basic materials space include Commercial Metals Company (CMC - Free Report) , Cabot Corporation (CBT - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Commercial Metals, sporting a Zacks Rank #1, has a projected earnings growth rate of 62% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 22.7% upward over the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 13.1%, on average. CMC has rallied around 59% in a year.
Cabot, carrying a Zacks Rank #1, has an expected earnings growth rate of 15.4% for the current fiscal year. CBT's consensus estimate for the current fiscal year has been revised 7.8% upward over the past 60 days.
Cabot beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 21.6%. CBT shares have gained around 53% in a year.
AdvanSix, carrying a Zacks Rank #2 (Buy), has an expected earnings growth rate of 7.4% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 3.2% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied around 51% in a year.