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Why Is Albemarle (ALB) Down 0.3% Since Last Earnings Report?
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A month has gone by since the last earnings report for Albemarle (ALB - Free Report) . Shares have lost about 0.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Albemarle due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Albemarle's Q4 Earnings and Revenues Top Estimates
Albemarle 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
The consensus estimate has shifted 20.44% due to these changes.
VGM Scores
At this time, Albemarle has a poor Growth Score of F, a grade with the same score on the momentum front. Charting a somewhat similar path, 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 F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. 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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Why Is Albemarle (ALB) Down 0.3% Since Last Earnings Report?
A month has gone by since the last earnings report for Albemarle (ALB - Free Report) . Shares have lost about 0.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Albemarle due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Albemarle's Q4 Earnings and Revenues Top Estimates
Albemarle 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
The consensus estimate has shifted 20.44% due to these changes.
VGM Scores
At this time, Albemarle has a poor Growth Score of F, a grade with the same score on the momentum front. Charting a somewhat similar path, 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 F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Albemarle has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.