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Albemarle Q3 Preview: Triple-Digit Earnings Growth Inbound?

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The Zacks Basic Materials sector has held up relatively well in 2022, down roughly 11% and outperforming the S&P 500 by a fair margin.

A big-time player in the realm, Albemarle (ALB - Free Report) , is on deck to unveil quarterly earnings on November 2nd, after the market close.

Albemarle is a leading producer of highly-engineered specialty chemicals with three reportable segments: Lithium, Bromine, and Catalysts.

Currently, the company sports a favorable Zacks Rank #1 (Strong Buy) paired with an overall VGM Score of an F.

How does everything else stack up heading into the print? Let’s take a closer look.

Share Performance & Valuation

ALB shares have been notably strong in 2022, up more than 20% and widely outperforming the S&P 500.

Zacks Investment Research
Image Source: Zacks Investment Research

Over the last three months, Albemarle shares have continued on their market-beating trajectory, tacking on more than 15% in value and again outperforming the S&P 500.

Zacks Investment Research
Image Source: Zacks Investment Research

Albemarle shares trade at a 13.1X forward earnings multiple, nowhere near the 19.1X five-year median and reflecting a 71% premium relative to the Zacks Basic Materials sector average.

The company carries a Value Style Score of a D.

Zacks Investment ResearchImage Source: Zacks Investment Research

Quarterly Estimates

Analysts have been bullish in their earnings outlook, with three positive earnings estimate revisions coming in over the last several months. The Zacks Consensus EPS Estimate of $6.84 indicates a Y/Y uptick of a massive 550%.

Zacks Investment Research
Image Source: Zacks Investment Research

The company’s top-line is in great shape also; the Zacks Consensus Sales Estimate of $2.1 billion suggests a year-over-year uptick of more than a triple-digit 150%.

Quarterly Performance & Market Reactions

Albemarle is on an impressive earnings streak, exceeding both revenue and earnings estimates in four consecutive quarters.

Just in its latest print, the company penciled in a 14% bottom-line beat and an 8% revenue beat. Below is a chart illustrating the company’s revenue on a quarterly basis.

Zacks Investment Research
Image Source: Zacks Investment Research

Additionally, the market has had mixed reactions in response to the company’s quarterly results, with shares moving downwards twice and upwards twice following its last four prints.

Putting Everything Together

ALB shares have been notably strong in 2022, outperforming the general market across several timeframes.

The company’s forward P/E ratio sits well beneath its five-year median but is above its Zacks Sector average.

Analysts have been bullish in their earnings outlook, and estimates suggest substantial Y/Y upticks in both revenue and earnings.

The company has consistently exceeded quarterly estimates, with the market having mixed reactions following its last four releases.

Heading into the print, Albemarle (ALB - Free Report) carries a Zacks Rank #1 (Strong Buy) with an Earnings ESP Score of 3.6%.


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