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Albemarle's (ALB) Q4 Earnings Surpass Estimates, Sales Lag
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Albemarle Corporation (ALB - Free Report) logged a profit of $1,132.4 million or $9.60 per share in the fourth quarter of 2022 against a loss of $3.8 million or 3 cents per share a year ago.
Adjusted earnings in the reported quarter were $8.62 per share, topping the Zacks Consensus Estimate of $8.46.
Revenues climbed roughly 193% year over year to $2,621 million in the quarter, However, it trailed the Zacks Consensus Estimate of $2,626.5 million. The top line was driven by higher lithium pricing and increased volumes.
Albemarle Corporation Price, Consensus and EPS Surprise
Sales from the Lithium unit surged 410% year over year to $2,066 million. Sales were driven by higher pricing (up 328% net of currency) associated with renegotiated contracts and higher market pricing. Volumes rose 82% in the quarter on the back of the La Negra III/IV expansion in Chile and increased tolling volumes to meet rising customer demand.
The Bromine Specialties segment recorded sales of $319.4 million, up 10% year over year. Sales were supported by a 9% (net of currency) rise in pricing and 1% higher volume.
The Catalysts unit recorded revenues of $235.5 million in the reported quarter, up around 18% year over year. Volumes rose 8% while pricing increased 10% (net of currency).
FY22 Results
Earnings for full-year 2022 were $22.84 per share compared with $1.06 per share a year ago. Net sales more than doubled year over year to $7,320.1 million.
Financial Position
Albemarle ended 2022 with cash and cash equivalents of roughly $1,499,1 million, up more than three-fold year over year. Long-term debt was around $3,215 million, up around 60% year over year.
Cash flow from operations was $1,907.8 million for full-year 2022, up more than five-fold year over year.
Outlook
Albemarle expects net sales in the band of $11.3-$12.9 billion for 2023. It sees strength in lithium pricing and end-market demand to drive a 55-75% year-over-year rise in net sales in 2023. Adjusted EBITDA for the year is forecast to be $4.2-$5.1 billion.
Albemarle also sees adjusted earnings per share for 2023 in the band of $26.00-$33.00.
The company anticipates capital expenditures of $1.7-$1.9 billion for 2023. Net cash from operations is projected to be $2.1-$2.4 billion for the year.
Price Performance
Shares of Albemarle have gained 38.4% in the past year compared with an 8.3% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Albemarle currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Steel Dynamics, Inc. (STLD - Free Report) , Commercial Metals Company (CMC - Free Report) and Nucor Corporation (NUE - Free Report) .
Steel Dynamics currently sports a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for STLD's current-year earnings has been revised 22.3% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Steel Dynamics’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 11.3%, on average. STLD has rallied around 99% in a year.
Commercial Metals currently carries a Zacks Rank #1. The consensus estimate for CMC's current-year earnings has been revised 10% upward in the past 60 days.
Commercial Metals’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 16.7%, on average. CMC has gained around 56% in a year.
Nucor currently carries a Zacks Rank #1. The Zacks Consensus Estimate for NUE’s current-year earnings has been revised 12.9% upward in the past 60 days.
Nucor beat Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 7.7% on average. NUE’s shares have gained roughly 41% in the past year.
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Albemarle's (ALB) Q4 Earnings Surpass Estimates, Sales Lag
Albemarle Corporation (ALB - Free Report) logged a profit of $1,132.4 million or $9.60 per share in the fourth quarter of 2022 against a loss of $3.8 million or 3 cents per share a year ago.
Adjusted earnings in the reported quarter were $8.62 per share, topping the Zacks Consensus Estimate of $8.46.
Revenues climbed roughly 193% year over year to $2,621 million in the quarter, However, it trailed the Zacks Consensus Estimate of $2,626.5 million. The top line was driven by higher lithium pricing and increased volumes.
Albemarle Corporation Price, Consensus and EPS Surprise
Albemarle Corporation price-consensus-eps-surprise-chart | Albemarle Corporation Quote
Segment Highlights
Sales from the Lithium unit surged 410% year over year to $2,066 million. Sales were driven by higher pricing (up 328% net of currency) associated with renegotiated contracts and higher market pricing. Volumes rose 82% in the quarter on the back of the La Negra III/IV expansion in Chile and increased tolling volumes to meet rising customer demand.
The Bromine Specialties segment recorded sales of $319.4 million, up 10% year over year. Sales were supported by a 9% (net of currency) rise in pricing and 1% higher volume.
The Catalysts unit recorded revenues of $235.5 million in the reported quarter, up around 18% year over year. Volumes rose 8% while pricing increased 10% (net of currency).
FY22 Results
Earnings for full-year 2022 were $22.84 per share compared with $1.06 per share a year ago. Net sales more than doubled year over year to $7,320.1 million.
Financial Position
Albemarle ended 2022 with cash and cash equivalents of roughly $1,499,1 million, up more than three-fold year over year. Long-term debt was around $3,215 million, up around 60% year over year.
Cash flow from operations was $1,907.8 million for full-year 2022, up more than five-fold year over year.
Outlook
Albemarle expects net sales in the band of $11.3-$12.9 billion for 2023. It sees strength in lithium pricing and end-market demand to drive a 55-75% year-over-year rise in net sales in 2023. Adjusted EBITDA for the year is forecast to be $4.2-$5.1 billion.
Albemarle also sees adjusted earnings per share for 2023 in the band of $26.00-$33.00.
The company anticipates capital expenditures of $1.7-$1.9 billion for 2023. Net cash from operations is projected to be $2.1-$2.4 billion for the year.
Price Performance
Shares of Albemarle have gained 38.4% in the past year compared with an 8.3% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Albemarle currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Steel Dynamics, Inc. (STLD - Free Report) , Commercial Metals Company (CMC - Free Report) and Nucor Corporation (NUE - Free Report) .
Steel Dynamics currently sports a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for STLD's current-year earnings has been revised 22.3% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Steel Dynamics’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 11.3%, on average. STLD has rallied around 99% in a year.
Commercial Metals currently carries a Zacks Rank #1. The consensus estimate for CMC's current-year earnings has been revised 10% upward in the past 60 days.
Commercial Metals’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 16.7%, on average. CMC has gained around 56% in a year.
Nucor currently carries a Zacks Rank #1. The Zacks Consensus Estimate for NUE’s current-year earnings has been revised 12.9% upward in the past 60 days.
Nucor beat Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 7.7% on average. NUE’s shares have gained roughly 41% in the past year.