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Albemarle's (ALB) Earnings Miss Estimates in Q1, Revenues Beat
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Albemarle Corporation (ALB - Free Report) logged a loss of 8 cents per share in the first quarter of 2024. In the year-ago quarter, the company had reported earnings of $10.51 per share.
Adjusted earnings in the reported quarter came in at 26 cents per share, missing the Zacks Consensus Estimate of 35 cents.
Revenues fell roughly 47% year over year to $1,360.7 million in the quarter. However, the metric beat the Zacks Consensus Estimate of $1,309.6 million. The top line was hurt by lower prices in the Energy Storage unit. The company’s results were impacted by lower lithium market pricing in the quarter.
Albemarle Corporation Price, Consensus and EPS Surprise
Sales from the Energy Storage unit fell around 59% year over year to $800.9 million. It beat the consensus estimate of $720.1 million. The decline in sales was attributed to reduced pricing. However, sales volumes increased partly due to the ramp of lithium projects, including the La Negra III/IV expansion in Chile and the processing plant in Qinzhou, China.
The Specialties segment recorded sales of $316.1 million, down around 25% year over year. It was below the consensus estimate of $362.7 million. Lower volumes and a decline in pricing impacted sales.
The Ketjen unit recorded revenues of $243.8 million in the reported quarter, up roughly 12% year over year. It was below the consensus estimate of $253.4 million. Higher prices and higher volumes aided sales.
Financial Position
Albemarle ended the quarter with cash and cash equivalents of roughly $2,055.8 million, up around 131% sequentially. Long-term debt was around $3,519.5 million, down around 0.6% from the prior quarter.
Outlook
Albemarle said that volume growth in Energy Storage is trending toward the high end of its earlier provided 10-20% year-over-year growth outlook for 2024.
ALB expects net sales for its Specialties segment in the range of $1.3-$1.5 billion, with an adjusted EBITDA of $270-$330 million. For the Ketjen segment, net sales are projected to be $1-$1.2 billion, with an adjusted EBITDA of $130-$150 million.
Capital expenditures for 2024 are forecast to be in the range of $1.6-$1.8 billion, while depreciation and amortization are projected to be in the band of $580-$660 million. Corporate costs are projected in the range of $120-$150 million while interest and financing expenses are expected to be between $180 million and $210 million.
The company is on track to deliver more than $280 million in productivity benefits in 2024.
Price Performance
Shares of Albemarle have lost 31.2% in the past year compared with a 5% fall of the industry.
The Zacks Consensus Estimate for GFI’s first-quarter earnings is pegged at 22 cents per share. The consensus estimate for GFI’s first-quarter earnings has been stable in the past 60 days.
L.B. Foster is slated to report first-quarter results on May 7. The consensus estimate for FSTR’s first-quarter earnings is pegged at a loss of 16 cents per share. The company’s shares have rallied around 118% in the past year.
American Vanguard is expected to report first-quarter results on May 14. The consensus estimate for AVD’ first-quarter earnings is pegged at 8 cents per share, indicating a year-over-year rise of 14.3%.
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Albemarle's (ALB) Earnings Miss Estimates in Q1, Revenues Beat
Albemarle Corporation (ALB - Free Report) logged a loss of 8 cents per share in the first quarter of 2024. In the year-ago quarter, the company had reported earnings of $10.51 per share.
Adjusted earnings in the reported quarter came in at 26 cents per share, missing the Zacks Consensus Estimate of 35 cents.
Revenues fell roughly 47% year over year to $1,360.7 million in the quarter. However, the metric beat the Zacks Consensus Estimate of $1,309.6 million. The top line was hurt by lower prices in the Energy Storage unit. The company’s results were impacted by lower lithium market pricing in the quarter.
Albemarle Corporation Price, Consensus and EPS Surprise
Albemarle Corporation price-consensus-eps-surprise-chart | Albemarle Corporation Quote
Segment Highlights
Sales from the Energy Storage unit fell around 59% year over year to $800.9 million. It beat the consensus estimate of $720.1 million. The decline in sales was attributed to reduced pricing. However, sales volumes increased partly due to the ramp of lithium projects, including the La Negra III/IV expansion in Chile and the processing plant in Qinzhou, China.
The Specialties segment recorded sales of $316.1 million, down around 25% year over year. It was below the consensus estimate of $362.7 million. Lower volumes and a decline in pricing impacted sales.
The Ketjen unit recorded revenues of $243.8 million in the reported quarter, up roughly 12% year over year. It was below the consensus estimate of $253.4 million. Higher prices and higher volumes aided sales.
Financial Position
Albemarle ended the quarter with cash and cash equivalents of roughly $2,055.8 million, up around 131% sequentially. Long-term debt was around $3,519.5 million, down around 0.6% from the prior quarter.
Outlook
Albemarle said that volume growth in Energy Storage is trending toward the high end of its earlier provided 10-20% year-over-year growth outlook for 2024.
ALB expects net sales for its Specialties segment in the range of $1.3-$1.5 billion, with an adjusted EBITDA of $270-$330 million. For the Ketjen segment, net sales are projected to be $1-$1.2 billion, with an adjusted EBITDA of $130-$150 million.
Capital expenditures for 2024 are forecast to be in the range of $1.6-$1.8 billion, while depreciation and amortization are projected to be in the band of $580-$660 million. Corporate costs are projected in the range of $120-$150 million while interest and financing expenses are expected to be between $180 million and $210 million.
The company is on track to deliver more than $280 million in productivity benefits in 2024.
Price Performance
Shares of Albemarle have lost 31.2% in the past year compared with a 5% fall of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
ALB currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth a look in the basic materials space include Gold Fields Limited (GFI - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and L.B. Foster Company (FSTR - Free Report) and American Vanguard Corporation (AVD - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GFI’s first-quarter earnings is pegged at 22 cents per share. The consensus estimate for GFI’s first-quarter earnings has been stable in the past 60 days.
L.B. Foster is slated to report first-quarter results on May 7. The consensus estimate for FSTR’s first-quarter earnings is pegged at a loss of 16 cents per share. The company’s shares have rallied around 118% in the past year.
American Vanguard is expected to report first-quarter results on May 14. The consensus estimate for AVD’ first-quarter earnings is pegged at 8 cents per share, indicating a year-over-year rise of 14.3%.