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Why Is Albemarle (ALB) Up 6.3% 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 added about 6.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Albemarle due for a pullback? 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 Tops Q1 Earnings and Revenues, Raises FY22 View
Albemarle 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.
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.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 95.68% due to these changes.
VGM Scores
At this time, Albemarle has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile 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 these revisions looks promising. It comes with little surprise Albemarle has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Albemarle is part of the Zacks Chemical - Diversified industry. Over the past month, LyondellBasell (LYB - Free Report) , a stock from the same industry, has gained 3.4%. The company reported its results for the quarter ended March 2022 more than a month ago.
LyondellBasell reported revenues of $13.16 billion in the last reported quarter, representing a year-over-year change of +44.9%. EPS of $4 for the same period compares with $3.18 a year ago.
For the current quarter, LyondellBasell is expected to post earnings of $4.78 per share, indicating a change of -22% from the year-ago quarter. The Zacks Consensus Estimate has changed +4.2% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for LyondellBasell. Also, the stock has a VGM Score of A.
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Why Is Albemarle (ALB) Up 6.3% Since Last Earnings Report?
A month has gone by since the last earnings report for Albemarle (ALB - Free Report) . Shares have added about 6.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Albemarle due for a pullback? 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 Tops Q1 Earnings and Revenues, Raises FY22 View
Albemarle 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.
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.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 95.68% due to these changes.
VGM Scores
At this time, Albemarle has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile 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 these revisions looks promising. It comes with little surprise Albemarle has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Albemarle is part of the Zacks Chemical - Diversified industry. Over the past month, LyondellBasell (LYB - Free Report) , a stock from the same industry, has gained 3.4%. The company reported its results for the quarter ended March 2022 more than a month ago.
LyondellBasell reported revenues of $13.16 billion in the last reported quarter, representing a year-over-year change of +44.9%. EPS of $4 for the same period compares with $3.18 a year ago.
For the current quarter, LyondellBasell is expected to post earnings of $4.78 per share, indicating a change of -22% from the year-ago quarter. The Zacks Consensus Estimate has changed +4.2% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for LyondellBasell. Also, the stock has a VGM Score of A.