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Albemarle (ALB) Tops Q1 Earnings and Revenues, Raises FY22 View
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Albemarle Corporation (ALB - Free Report) logged a profit of $253.4 million or $2.15 per share in the first quarter of 2022, up from a profit of $95.7 million or 84 cents per share a year ago. The bottom line was driven by increased net sales that more than offset inflationary cost pressures including higher natural gas prices in Europe.
Adjusted earnings in the reported quarter were $2.38 per share, topping the Zacks Consensus Estimate of $1.73.
Revenues rose roughly 36% year over year to $1,127.7 million in the quarter and surpassed the Zacks Consensus Estimate of $1,038.1 million. The top line was driven by higher pricing across the company’s segments on the back of strong demand from diverse end markets.
Albemarle Corporation Price, Consensus and EPS Surprise
Sales from the Lithium unit climbed around 97% year over year to $550.3 million in the reported quarter on the back of higher pricing (up 66%) and one-time sale of spodumene produced during the initial startup of the MARBL Lithium Wodgina mine. Volumes rose 31% in the quarter.
The Bromine Specialties segment recorded sales of $359.6 million, up around 28% year over year. Sales were supported by a 25% rise in pricing and 3% higher volume. Tight market conditions led to strong demand and favorable pricing.
The Catalysts unit recorded revenues of $217.9 million in the reported quarter, down around 1% year over year, as modestly higher pricing (up 1%) offset lower volumes (down 2%).
Financial Position
Albemarle ended the quarter with cash and cash equivalents of roughly $463.3 million, down around 19% year over year. Long-term debt was $1,985.7 million, up around 2%.
Cash flow from operations was around $206.2 million for the reported quarter, up around 31% year over year.
Outlook
Albemarle raised its net sales outlook for 2022 factoring in higher prices in lithium and bromine businesses. The company envisions net sales for 2022 to be between $5.2 billion and $5.6 billion, up from $4.2 billion and $4.5 billion it expected earlier. Adjusted EBITDA for the year is now forecast to be $1.7-$2 billion, up from the prior view of $1.15-$1.3 billion.
Albemarle also sees adjusted earnings per share for 2022 in the band of $9.25-$12.25, up from $5.65-$6.65 it expected earlier. The company also noted that its full-year outlook has improved based on expectations of continued demand growth and the tightness in the markets it serves.
The company anticipates capital expenditures of $1.3-1.5 billion for 2022. Net cash from operations is projected to be $500-$800 million.
Price Performance
Albemarle’s shares have gained 28.9% in the past year compared with a 7.7% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
Albemarle currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks worth considering in the basic materials space include Steel Dynamics, Inc. (STLD - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Commercial Metals Company (CMC - Free Report) .
Steel Dynamics, sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 18.5% for the current year. The Zacks Consensus Estimate for STLD's current-year earnings has been revised 32.5% upward over the last 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Steel Dynamics beat the Zacks Consensus Estimate for earnings in each of the last four quarters, the average being roughly 2.5%. STLD has rallied around 45% in a year.
AdvanSix, carrying a Zacks Rank #1, has an expected earnings growth rate of 63.4% for the current year. ASIX's consensus estimate for current-year earnings has been revised 31.9% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 23.6%, on average. ASIX has rallied around 48% in a year.
Commercial Metals, carrying a Zacks Rank #1, has a projected earnings growth rate of 78.2% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 31.9% 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 16%, on average. CMC has gained around 35% in a year.
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Albemarle (ALB) Tops Q1 Earnings and Revenues, Raises FY22 View
Albemarle Corporation (ALB - Free Report) logged a profit of $253.4 million or $2.15 per share in the first quarter of 2022, up from a profit of $95.7 million or 84 cents per share a year ago. The bottom line was driven by increased net sales that more than offset inflationary cost pressures including higher natural gas prices in Europe.
Adjusted earnings in the reported quarter were $2.38 per share, topping the Zacks Consensus Estimate of $1.73.
Revenues rose roughly 36% year over year to $1,127.7 million in the quarter and surpassed the Zacks Consensus Estimate of $1,038.1 million. The top line was driven by higher pricing across the company’s segments on the back of strong demand from diverse end markets.
Albemarle Corporation Price, Consensus and EPS Surprise
Albemarle Corporation price-consensus-eps-surprise-chart | Albemarle Corporation Quote
Segment Highlights
Sales from the Lithium unit climbed around 97% year over year to $550.3 million in the reported quarter on the back of higher pricing (up 66%) and one-time sale of spodumene produced during the initial startup of the MARBL Lithium Wodgina mine. Volumes rose 31% in the quarter.
The Bromine Specialties segment recorded sales of $359.6 million, up around 28% year over year. Sales were supported by a 25% rise in pricing and 3% higher volume. Tight market conditions led to strong demand and favorable pricing.
The Catalysts unit recorded revenues of $217.9 million in the reported quarter, down around 1% year over year, as modestly higher pricing (up 1%) offset lower volumes (down 2%).
Financial Position
Albemarle ended the quarter with cash and cash equivalents of roughly $463.3 million, down around 19% year over year. Long-term debt was $1,985.7 million, up around 2%.
Cash flow from operations was around $206.2 million for the reported quarter, up around 31% year over year.
Outlook
Albemarle raised its net sales outlook for 2022 factoring in higher prices in lithium and bromine businesses. The company envisions net sales for 2022 to be between $5.2 billion and $5.6 billion, up from $4.2 billion and $4.5 billion it expected earlier. Adjusted EBITDA for the year is now forecast to be $1.7-$2 billion, up from the prior view of $1.15-$1.3 billion.
Albemarle also sees adjusted earnings per share for 2022 in the band of $9.25-$12.25, up from $5.65-$6.65 it expected earlier. The company also noted that its full-year outlook has improved based on expectations of continued demand growth and the tightness in the markets it serves.
The company anticipates capital expenditures of $1.3-1.5 billion for 2022. Net cash from operations is projected to be $500-$800 million.
Price Performance
Albemarle’s shares have gained 28.9% in the past year compared with a 7.7% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
Albemarle currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks worth considering in the basic materials space include Steel Dynamics, Inc. (STLD - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Commercial Metals Company (CMC - Free Report) .
Steel Dynamics, sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 18.5% for the current year. The Zacks Consensus Estimate for STLD's current-year earnings has been revised 32.5% upward over the last 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Steel Dynamics beat the Zacks Consensus Estimate for earnings in each of the last four quarters, the average being roughly 2.5%. STLD has rallied around 45% in a year.
AdvanSix, carrying a Zacks Rank #1, has an expected earnings growth rate of 63.4% for the current year. ASIX's consensus estimate for current-year earnings has been revised 31.9% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 23.6%, on average. ASIX has rallied around 48% in a year.
Commercial Metals, carrying a Zacks Rank #1, has a projected earnings growth rate of 78.2% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 31.9% 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 16%, on average. CMC has gained around 35% in a year.