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Albemarle to Post Q2 Earnings: What's in the Cards for the Stock?
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Key Takeaways
Albemarle is set to report Q2 earnings on July 30, with revenue expected to fall 13.1% year over year.
Cost-saving and productivity actions likely supported margins despite headwinds from lithium price declines.
The Energy Storage unit's sales are projected to drop 28.4%, while Specialties may see an 11.3% rise.
Albemarle Corporation (ALB - Free Report) is slated to release second-quarter 2025 results after the closing bell on July 30.
The company missed the Zacks Consensus Estimate for earnings in three of the trailing four quarters and beat it once. In this timeframe, it delivered a negative earnings surprise of 136%, on average. It posted an earnings surprise of 71% in the last reported quarter. ALB is likely to have benefited from its cost and productivity actions in the second quarter amid headwinds from weak lithium market prices.
ALB’s shares have lost 19.2% over the past year compared with the Zacks Chemicals Diversified industry’s 19.4% decline.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
What Do ALB’s Revenue Estimates Say?
The Zacks Consensus Estimate for revenues for Albemarle for the to-be-reported quarter stands at $1,243.2 million, reflecting a decline of around 13.1% from the year-ago quarter.
The consensus estimate for net sales for the Energy Storage unit for the second quarter is pegged at $589 million, reflecting a year-over-year decline of 28.4%.
The Zacks Consensus Estimate for net sale for the Specialties unit is pinned at $345 million, suggesting a year-over-year rise of 11.3%.
The Zacks Consensus Estimate for net sales for the Ketjen unit stands at $260 million, flat year over year.
Factors to Watch for ALB Stock
ALB is expected to have gained from its cost-saving, pricing and productivity initiatives in the second quarter. Its cost and productivity actions are expected to have supported margins in the quarter. Efforts to drive operating efficiency and improve the utilization of raw materials are likely to have aided the company’s performance.
Albemarle is taking actions to cut costs, optimize its conversion network and increase efficiencies to preserve its long-term competitive position. During the first quarter, ALB made progress with the earlier-announced comprehensive review of its cost and operating structure. It achieved roughly 90% run-rate against the midpoint of $350 million cost and productivity improvement target through April and identified opportunities to attain the high-end of the $300-$400 million range.
Soft lithium market prices are likely to have impacted the company’s performance. Lithium prices have declined amid slowing demand growth for electric vehicles, inventory glut and increased supply. The uncertain macroeconomic environment and high interest rates have weighed on demand. Weaker lithium prices are likely to have hurt ALB’s top line and margins in the second quarter.
Our proven model does not conclusively predict an earnings beat for ALB this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for ALB is +21.13%. The Zacks Consensus Estimate for the second quarter is currently pegged at a loss of 83 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: ALB currently carries a Zacks Rank #4 (Sell).
Basic Materials 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:
Image: Bigstock
Albemarle to Post Q2 Earnings: What's in the Cards for the Stock?
Key Takeaways
Albemarle Corporation (ALB - Free Report) is slated to release second-quarter 2025 results after the closing bell on July 30.
The company missed the Zacks Consensus Estimate for earnings in three of the trailing four quarters and beat it once. In this timeframe, it delivered a negative earnings surprise of 136%, on average. It posted an earnings surprise of 71% in the last reported quarter. ALB is likely to have benefited from its cost and productivity actions in the second quarter amid headwinds from weak lithium market prices.
ALB’s shares have lost 19.2% over the past year compared with the Zacks Chemicals Diversified industry’s 19.4% decline.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
What Do ALB’s Revenue Estimates Say?
The Zacks Consensus Estimate for revenues for Albemarle for the to-be-reported quarter stands at $1,243.2 million, reflecting a decline of around 13.1% from the year-ago quarter.
The consensus estimate for net sales for the Energy Storage unit for the second quarter is pegged at $589 million, reflecting a year-over-year decline of 28.4%.
The Zacks Consensus Estimate for net sale for the Specialties unit is pinned at $345 million, suggesting a year-over-year rise of 11.3%.
The Zacks Consensus Estimate for net sales for the Ketjen unit stands at $260 million, flat year over year.
Factors to Watch for ALB Stock
ALB is expected to have gained from its cost-saving, pricing and productivity initiatives in the second quarter. Its cost and productivity actions are expected to have supported margins in the quarter. Efforts to drive operating efficiency and improve the utilization of raw materials are likely to have aided the company’s performance.
Albemarle is taking actions to cut costs, optimize its conversion network and increase efficiencies to preserve its long-term competitive position. During the first quarter, ALB made progress with the earlier-announced comprehensive review of its cost and operating structure. It achieved roughly 90% run-rate against the midpoint of $350 million cost and productivity improvement target through April and identified opportunities to attain the high-end of the $300-$400 million range.
Soft lithium market prices are likely to have impacted the company’s performance. Lithium prices have declined amid slowing demand growth for electric vehicles, inventory glut and increased supply. The uncertain macroeconomic environment and high interest rates have weighed on demand. Weaker lithium prices are likely to have hurt ALB’s top line and margins in the second quarter.
Albemarle Corporation Price and EPS Surprise
Albemarle Corporation price-eps-surprise | Albemarle Corporation Quote
What Our Model Unveils for ALB Stock
Our proven model does not conclusively predict an earnings beat for ALB this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for ALB is +21.13%. The Zacks Consensus Estimate for the second quarter is currently pegged at a loss of 83 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: ALB currently carries a Zacks Rank #4 (Sell).
Basic Materials 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:
Agnico Eagle Mines Limited (AEM - Free Report) , scheduled to release earnings on July 30, has an Earnings ESP of +7.97% and carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for AEM’s earnings for the second quarter is currently pegged at $1.69.
ATI Inc. (ATI - Free Report) , slated to release earnings on July 31, has an Earnings ESP of +3.38% and carries a Zacks Rank #2 at present.
The consensus mark for ATI’s second-quarter earnings is currently pegged at 71 cents.
Kinross Gold Corporation (KGC - Free Report) , scheduled to release earnings on July 30, has an Earnings ESP of +0.93%.
The Zacks Consensus Estimate for KGC's earnings for the second quarter is currently pegged at 32 cents. KGC currently carries a Zacks Rank #1.