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Sociedad Quimica (SQM) to Post Q2 Earnings: What's in the Offing?

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Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) will release second-quarter 2022 results after the closing bell on Aug 17.

The company beat the Zacks Consensus Estimate for earnings in two of the last four quarters while missed twice. It has a trailing four-quarter earnings surprise of around 28.2%, on average. It posted a positive earnings surprise of 126.8% in the last reported quarter. The company’s second-quarter results are likely to have benefited from higher demand and prices.

Shares of Sociedad Quimica have gained 87.5% in the past year compared with 51.7% rise of the industry.

 

Zacks Investment Research
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Let’s see how things are shaping up for this announcement.

Zacks Model

Our proven model predicts an earnings beat for Sociedad Quimica this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat.

Earnings ESP: Earnings ESP for Sociedad Quimica is +1.39%. The Zacks Consensus Estimate for the second quarter is currently pegged at $3.24. Our estimate for the quarter is $2.63. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Sociedad Quimica currently carries a Zacks Rank #1.

What do the Estimates Say?

The Zacks Consensus Estimate for second-quarter sales for Sociedad Quimica is currently pegged at $2,367.7 million, which suggests a rise of around 302.7% year over year.

Some Factors to Watch For

The company is likely to have gained from higher realized prices and strong demand in the quarter to be reported. Higher sales volumes in lithium, specialty plant nutrition, potassium chloride, iodine and potassium businesses are expected to have aided its top line and margins in the quarter.

Sociedad Quimica is benefiting from favorable trends in the lithium market underpinned by strong electric vehicle sales. The expansion of lithium operations is also expected to have supported the company’s lithium sales volumes. Strong demand and limited supply are also likely to have boosted lithium prices in the June quarter. Iodine volumes are also expected to have been supported by growing demand following the post-pandemic recovery. The company is also expects to have gained from higher iodine prices.

Global potassium prices are also expected to have been driven by the shortage of potassium-based fertilizers. This is likely to have boosted prices in the company’s potassium business lines in the second quarter.

 

Sociedad Quimica y Minera S.A. Price and EPS Surprise

 

Sociedad Quimica y Minera S.A. Price and EPS Surprise

Sociedad Quimica y Minera S.A. price-eps-surprise | Sociedad Quimica y Minera S.A. Quote

 

Stocks That Warrant a Look

Here are some companies you may want to consider, as our model shows these have the right combination of elements to post an earnings beat this quarter:

Abercrombie & Fitch Co. (ANF - Free Report) , slated to release earnings on Aug 25, has an Earnings ESP of +15.39% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for Abercrombie & Fitch’s second-quarter earnings has been stable over the past 60 days. The Zacks Consensus Estimate for ANF’s earnings for the quarter is pegged at 26 cents.

Dollar General Corporation (DG - Free Report) , scheduled to release earnings on Aug 25, has an Earnings ESP of +0.99% and carries a Zacks Rank #2.

The Zacks Consensus Estimate for Dollar General’s second-quarter earnings has been revised 0.7% upward in the past 60 days. The consensus estimate for DG’s earnings for the quarter is currently pegged at $2.92.

Farfetch Limited (FTCH - Free Report) , scheduled to release earnings on Aug 25, has an Earnings ESP of +21.76%.

The Zacks Consensus Estimate for Farfetch's earnings for the second quarter is currently pegged at a loss of 26 cents. FTCH currently carries a Zacks Rank #3.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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