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Albemarle (ALB) to Post Q1 Earnings: What's in the Offing?
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Albemarle Corporation (ALB - Free Report) will release first-quarter 2022 results after the closing bell on May 4. The company is likely to have benefited from higher lithium volumes and prices and its cost-reduction actions in the quarter. However, it is expected have faced headwinds from higher raw material and freight costs.
The company beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters. In this timeframe, it delivered an earnings surprise of 22.9%, on average. It posted an earnings surprise of 5.2% in the last reported quarter.
Albemarle’s shares have gained 16.2% over a year compared with a 7.1% decline of the industry it belongs to.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
The Zacks Consensus Estimate for revenues for Albemarle for the to-be-reported quarter stands at $1,038 million, reflecting an increase of around 25.2% from the year-ago quarter.
The Zacks Consensus Estimate for net sales for the Lithium unit stands at $535 million, indicating a 91.8% year-over-year rise. The same for the Bromine Specialties segment for the first quarter is pegged at $304 million, reflecting an 8.6% increase on a year-over-year basis.
The Zacks Consensus Estimate for net sales for the Catalysts segment is pinned at $216 million, suggesting a 1.8% year-over-year decline.
Some Factors to Watch For
Albemarle is likely to have benefited from higher volumes in its lithium business in the first quarter. Strong shipments from the company’s Talison joint venture are likely to have supported the lithium business. Higher lithium prices are also expected to have aided its performance.
The company’s bromine business is also expected to have gained from higher demand on continued recovery in global economic activities in the March quarter. It is likely to have witnessed strong demand for flame retardants.
Benefits of the company’s cost-saving, pricing and productivity initiatives are also expected to get reflected in the quarter to be reported. Its cost and productivity actions are expected to have supported margins in the first quarter.
However, the company’s results are likely to have been impacted by higher raw material costs as well as logistics and supply-chain disruptions. Higher raw materials and freight costs are expected to have exerted pressure on margins across its bromine and catalysts businesses in the to-be-reported quarter.
Our proven model does not conclusively predict an earnings beat for Albemarle this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for Albemarle is -4.76%. The Zacks Consensus Estimate for earnings for the first quarter is currently pegged at $1.73. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Albemarle currently carries a Zacks Rank #3.
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows these have the right combination of elements to post an earnings beat this quarter:
The Zacks Consensus Estimate for Allegheny’s first-quarter earnings has been revised 4.8% upward over the past 60 days. The Zacks Consensus Estimate for ATI’s earnings for the quarter is currently pegged at 22 cents.
Westlake Corporation (WLK - Free Report) , slated to release earnings on May 3, has an Earnings ESP of +12.98% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for Westlake's first-quarter earnings has been revised 22.1% upward over the past 60 days. The consensus estimate for WLK’s earnings for the quarter is currently pegged at $4.70.
Olympic Steel, Inc. (ZEUS - Free Report) , scheduled to release earnings on May 5, has an Earnings ESP of +6.64% and carries a Zacks Rank #1.
The Zacks Consensus Estimate for Olympic Steel’s first-quarter earnings has been revised 7.1% upward in the past 60 days. The consensus estimate for ZEUS’s earnings for the quarter is currently pegged at $2.26.
Image: Bigstock
Albemarle (ALB) to Post Q1 Earnings: What's in the Offing?
Albemarle Corporation (ALB - Free Report) will release first-quarter 2022 results after the closing bell on May 4. The company is likely to have benefited from higher lithium volumes and prices and its cost-reduction actions in the quarter. However, it is expected have faced headwinds from higher raw material and freight costs.
The company beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters. In this timeframe, it delivered an earnings surprise of 22.9%, on average. It posted an earnings surprise of 5.2% in the last reported quarter.
Albemarle’s shares have gained 16.2% over a year compared with a 7.1% decline of the industry it belongs to.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
The Zacks Consensus Estimate for revenues for Albemarle for the to-be-reported quarter stands at $1,038 million, reflecting an increase of around 25.2% from the year-ago quarter.
The Zacks Consensus Estimate for net sales for the Lithium unit stands at $535 million, indicating a 91.8% year-over-year rise. The same for the Bromine Specialties segment for the first quarter is pegged at $304 million, reflecting an 8.6% increase on a year-over-year basis.
The Zacks Consensus Estimate for net sales for the Catalysts segment is pinned at $216 million, suggesting a 1.8% year-over-year decline.
Some Factors to Watch For
Albemarle is likely to have benefited from higher volumes in its lithium business in the first quarter. Strong shipments from the company’s Talison joint venture are likely to have supported the lithium business. Higher lithium prices are also expected to have aided its performance.
The company’s bromine business is also expected to have gained from higher demand on continued recovery in global economic activities in the March quarter. It is likely to have witnessed strong demand for flame retardants.
Benefits of the company’s cost-saving, pricing and productivity initiatives are also expected to get reflected in the quarter to be reported. Its cost and productivity actions are expected to have supported margins in the first quarter.
However, the company’s results are likely to have been impacted by higher raw material costs as well as logistics and supply-chain disruptions. Higher raw materials and freight costs are expected to have exerted pressure on margins across its bromine and catalysts businesses in the to-be-reported quarter.
Albemarle Corporation Price and EPS Surprise
Albemarle Corporation price-eps-surprise | Albemarle Corporation Quote
Zacks Model
Our proven model does not conclusively predict an earnings beat for Albemarle this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for Albemarle is -4.76%. The Zacks Consensus Estimate for earnings for the first quarter is currently pegged at $1.73. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Albemarle currently carries a Zacks Rank #3.
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows these have the right combination of elements to post an earnings beat this quarter:
Allegheny Technologies Incorporated (ATI - Free Report) , scheduled to release earnings on May 4, has an Earnings ESP of +4.55% and carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Allegheny’s first-quarter earnings has been revised 4.8% upward over the past 60 days. The Zacks Consensus Estimate for ATI’s earnings for the quarter is currently pegged at 22 cents.
Westlake Corporation (WLK - Free Report) , slated to release earnings on May 3, has an Earnings ESP of +12.98% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for Westlake's first-quarter earnings has been revised 22.1% upward over the past 60 days. The consensus estimate for WLK’s earnings for the quarter is currently pegged at $4.70.
Olympic Steel, Inc. (ZEUS - Free Report) , scheduled to release earnings on May 5, has an Earnings ESP of +6.64% and carries a Zacks Rank #1.
The Zacks Consensus Estimate for Olympic Steel’s first-quarter earnings has been revised 7.1% upward in the past 60 days. The consensus estimate for ZEUS’s earnings for the quarter is currently pegged at $2.26.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.