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Arcadium Lithium (ALTM) to Post Q1 Earnings: What's in Store?

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Arcadium Lithium plc (ALTM - Free Report) is slated to release first-quarter 2024 results after the closing bell on May 7.

The company beat the Zacks Consensus Estimate for earnings in two of the trailing four quarters while missed twice. In this timeframe, it delivered an earnings surprise of 13.7%, on average. It delivered a negative earnings surprise of around 5.6% in the last reported quarter. ALTM is likely to have gained from higher overall volumes in the first quarter amid pricing headwinds.

The company’s shares are down 80.4% over a year compared with the industry’s 11.3% decline.

 

Zacks Investment Research
Image Source: Zacks Investment Research


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

 

Zacks Model

Our proven model predicts an earnings beat for Arcadium Lithium 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 Arcadium Lithium is +23.08%. The Zacks Consensus Estimate for first-quarter earnings is currently pegged at 3 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Arcadium Lithium currently carries a Zacks Rank #3.

What do the Sales Estimates Say?

The Zacks Consensus Estimate for the company’s first-quarter sales is currently pegged at $269.6 million, which suggests a rise of 6.4% from the year-ago quarter’s tally.

Some Factors at Play

Arcadium Lithium is expected to have benefited from higher volumes of lithium hydroxide and lithium carbonate in the quarter to be reported. The company expects a 40% year-over-year increase in combined lithium hydroxide and lithium carbonate sales volumes in 2024 driven by lithium carbonate expansion ramp-ups at Olaroz and Fenix, and downstream hydroxide assets globally.

However, this is likely to have been offset by weaker spodumene concentrate sales volumes. The company is reducing spodumene production at Mt. Cattlin in Western Australia as part of its cost optimization efforts in the wake of the prevailing lower pricing environment. This move is expected to result in reduced spodumene concentrate sales in 2024.

Moreover, the challenging lithium pricing environment is expected to have weighed on the company’s performance in the first quarter. Lithium prices have declined amid increased supply and a slowdown in electric vehicles sales. The weak pricing environment is expected to have continued in the quarter to be reported.

 

Arcadium Lithium PLC Price and EPS Surprise

 

Arcadium Lithium PLC Price and EPS Surprise

Arcadium Lithium PLC price-eps-surprise | Arcadium Lithium PLC Quote

 

Stocks That Warrant a Look

Here are some companies in the basic materials space you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:

Innospec Inc. (IOSP - Free Report) , scheduled to release earnings on May 9, has an Earnings ESP of +2.44% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for IOSP’s earnings for the first quarter is currently pegged at $1.64.

Kinross Gold Corporation (KGC - Free Report) , slated to release earnings on May 7, has an Earnings ESP of +4.49% and carries a Zacks Rank #3 at present.

The consensus mark for KGC’s first-quarter earnings is currently pegged at 6 cents.

Avient Corporation (AVNT - Free Report) , slated to release earnings on May 7, has an Earnings ESP of +4.04% and carries a Zacks Rank #2 at present.

The consensus mark for AVNT’s first-quarter earnings is currently pegged at 69 cents.


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

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