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Sociedad Quimica (SQM) Q4 Earnings and Sales Top Estimates
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Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) recorded a profit of $321.6 million or $1.13 per share for fourth-quarter 2021, up from $67 million or 25 cents in the year-ago quarter. Earnings per share for the reported quarter topped the Zacks Consensus Estimate of 97 cents.
The company registered revenues of $1,084.3 million for the quarter, up around 111% year over year. It also surpassed the Zacks Consensus Estimate of $1,011.2 million.
The company saw a significant rise in global potassium prices in the quarter driven by the shortage of potash and potassium-based fertilizers. Prices shot up 153% year over year in the fourth quarter and also rose 56% on a sequential comparison basis.
Sociedad Quimica y Minera S.A. Price, Consensus and EPS Surprise
Revenues from the Lithium and Derivatives segment surged roughly 231% year over year to $452.7 million in the reported quarter. The upside was driven by strong lithium sales volumes and prices.
The Specialty Plant Nutrients (SPN) segment raked in revenues of $268.4 million, up around 50% year over year. The upside was mainly driven by strong volumes and higher prices, mostly associated with the potassium nitrate markets.
Revenues from the Iodine and Derivatives unit came in at $109.8 million, up around 53% year over year. The segment benefited from the recovery in global iodine demand and higher average prices.
Revenues from the Potassium Chloride and Potassium Sulfate business jumped around 214% year over year to $208.6 million. Sales were driven by a significant price increase in global potassium chloride market and strong demand.
The Industrial Chemicals unit recorded sales of $37.6 million, down around 29% year over year.
FY21 Results
Earnings or full-year 2021 were $2.05 per share compared with 63 cents per share a year ago. Revenues were $2,862.3 million for the full year, up around 58% year over year. The company gained from stronger-than-expected demand growth in lithium, iodine, potassium chloride and potassium nitrate markets.
Financials
The company’s cash and cash equivalents nearly doubled year over year to $1,515.1 million at the end of 2021. Long-term debt was $2,587.7 million, up around 36% year over year.
Outlook
Moving ahead, the company envisions the positive trends in potassium pricing to continue in the near term, and also have a favorable impact on the pricing environment in the SPN business line during the first half of 2022.
Per the company, global lithium demand rose around 55% year over year in 2021, mainly driven by new demand for electric vehicles. Its current estimate for global lithium demand growth in 2022 is roughly 30%.
The company also expects iodine sales volumes in 2022 to be similar to volumes witnessed in 2021 while prices are likely to continue to rise this year. Average prices in the global potassium chloride market are also projected to be significantly higher in 2022 compared with 2021.
Price Performance
Shares of Sociedad Quimica are up 56.9% over a year compared with the industry’s rise of 60.8%.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Sociedad Quimica currently sports a Zacks Rank #1 (Strong Buy).
Other top-ranked stocks worth considering in the basic materials space include Cabot Corporation (CBT - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Commercial Metals Company (CMC - Free Report) .
Cabot, carrying a Zacks Rank #2 (Buy), has an expected earnings growth rate of 15.5% for the current fiscal year. The Zacks Consensus Estimate for CBT for the current fiscal year has been revised 7.8% upward over the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 21.6%. CBT shares have popped around 39% in a year.
AdvanSix, carrying a Zacks Rank #2, has an expected earnings growth rate of 17.3% for the current year. ASIX's consensus estimate for current-year earnings has been revised 12.4% 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 48% in a year.
Commercial Metals, carrying a Zacks Rank #2, 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.
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 gained around 31% in a year.
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Sociedad Quimica (SQM) Q4 Earnings and Sales Top Estimates
Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) recorded a profit of $321.6 million or $1.13 per share for fourth-quarter 2021, up from $67 million or 25 cents in the year-ago quarter. Earnings per share for the reported quarter topped the Zacks Consensus Estimate of 97 cents.
The company registered revenues of $1,084.3 million for the quarter, up around 111% year over year. It also surpassed the Zacks Consensus Estimate of $1,011.2 million.
The company saw a significant rise in global potassium prices in the quarter driven by the shortage of potash and potassium-based fertilizers. Prices shot up 153% year over year in the fourth quarter and also rose 56% on a sequential comparison basis.
Sociedad Quimica y Minera S.A. Price, Consensus and EPS Surprise
Sociedad Quimica y Minera S.A. price-consensus-eps-surprise-chart | Sociedad Quimica y Minera S.A. Quote
Segment Highlights
Revenues from the Lithium and Derivatives segment surged roughly 231% year over year to $452.7 million in the reported quarter. The upside was driven by strong lithium sales volumes and prices.
The Specialty Plant Nutrients (SPN) segment raked in revenues of $268.4 million, up around 50% year over year. The upside was mainly driven by strong volumes and higher prices, mostly associated with the potassium nitrate markets.
Revenues from the Iodine and Derivatives unit came in at $109.8 million, up around 53% year over year. The segment benefited from the recovery in global iodine demand and higher average prices.
Revenues from the Potassium Chloride and Potassium Sulfate business jumped around 214% year over year to $208.6 million. Sales were driven by a significant price increase in global potassium chloride market and strong demand.
The Industrial Chemicals unit recorded sales of $37.6 million, down around 29% year over year.
FY21 Results
Earnings or full-year 2021 were $2.05 per share compared with 63 cents per share a year ago. Revenues were $2,862.3 million for the full year, up around 58% year over year. The company gained from stronger-than-expected demand growth in lithium, iodine, potassium chloride and potassium nitrate markets.
Financials
The company’s cash and cash equivalents nearly doubled year over year to $1,515.1 million at the end of 2021. Long-term debt was $2,587.7 million, up around 36% year over year.
Outlook
Moving ahead, the company envisions the positive trends in potassium pricing to continue in the near term, and also have a favorable impact on the pricing environment in the SPN business line during the first half of 2022.
Per the company, global lithium demand rose around 55% year over year in 2021, mainly driven by new demand for electric vehicles. Its current estimate for global lithium demand growth in 2022 is roughly 30%.
The company also expects iodine sales volumes in 2022 to be similar to volumes witnessed in 2021 while prices are likely to continue to rise this year. Average prices in the global potassium chloride market are also projected to be significantly higher in 2022 compared with 2021.
Price Performance
Shares of Sociedad Quimica are up 56.9% over a year compared with the industry’s rise of 60.8%.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Sociedad Quimica currently sports a Zacks Rank #1 (Strong Buy).
Other top-ranked stocks worth considering in the basic materials space include Cabot Corporation (CBT - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Commercial Metals Company (CMC - Free Report) .
Cabot, carrying a Zacks Rank #2 (Buy), has an expected earnings growth rate of 15.5% for the current fiscal year. The Zacks Consensus Estimate for CBT for the current fiscal year has been revised 7.8% upward over the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 21.6%. CBT shares have popped around 39% in a year.
AdvanSix, carrying a Zacks Rank #2, has an expected earnings growth rate of 17.3% for the current year. ASIX's consensus estimate for current-year earnings has been revised 12.4% 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 48% in a year.
Commercial Metals, carrying a Zacks Rank #2, 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.
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 gained around 31% in a year.