Albemarle Company ALB is slated to launch third-quarter 2024 outcomes after the closing bell on Nov. 6.
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The corporate missed the Zacks Consensus Estimate for earnings in three of the trailing 4 quarters whereas beating as soon as. On this timeframe, it delivered a detrimental earnings shock of 14.3%, on common. It posted a detrimental earnings shock of roughly 92.5% within the final reported quarter. ALB is more likely to have benefited from wholesome lithium volumes and its price and productiveness actions within the third quarter amid headwinds from softer lithium market costs.
ALB’s shares have misplaced 15.8% over a yr in contrast with the Zacks Chemicals Diversified business’s 4.3% rise.
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Let’s see how issues are shaping up for this announcement.
What do ALB’s Income Estimates Say?
The Zacks Consensus Estimate for revenues for Albemarle for the to-be-reported quarter stands at $1,385.8 million, reflecting a decline of round 40% from the year-ago quarter.
The consensus estimate for web gross sales for the Power Storage unit for the third quarter is pegged at $768.1 million, reflecting a year-over-year decline of 54.7%.
The Zacks Consensus Estimate for web sale for the Specialties unit is pinned at $344 million, suggesting a year-over-year lower of two.5%.
The Zacks Consensus Estimate for web gross sales for the Ketjen unit stands at $278.4 million, indicating a year-over-year rise of 6.8%.
Elements to Watch For ALB Inventory
Albemarle is more likely to have benefited from larger volumes in its lithium enterprise within the quarter to be reported. Wholesome buyer demand, ramp-up of lithium tasks and plant productiveness enhancements are anticipated to have supported volumes. The La Negra growth in Chile and the processing plant in Qinzhou, China are more likely to have contributed to volumes.
The advantages of ALB’s cost-saving, pricing and productiveness initiatives are anticipated to get mirrored within the September quarter. The corporate delivered greater than $150 million in restructuring and productiveness advantages within the second quarter and is on observe to surpass its preliminary productiveness goal for 2024 by roughly 50%. Its price and productiveness actions are anticipated to have supported margins within the third quarter. Efforts to drive working effectivity and enhance the utilization of uncooked supplies are more likely to have aided the corporate’s efficiency.
Weaker lithium market costs are more likely to have impacted the corporate’s efficiency. Lithium costs nosedived greater than 80% yr over yr in 2023, and the weak spot continues this yr. Costs have declined amid slowing demand progress for electrical autos, stock glut and elevated provide from China. Weaker lithium costs are more likely to have damage the corporate’s ends in the third quarter.
The corporate’s Specialties unit is more likely to have confronted headwinds from demand and pricing weak spot within the quarter to be reported. The section faces demand headwinds within the client electronics market. The demand weak spot is predicted to have continued within the third quarter.
Albemarle Company Value and EPS Shock
Albemarle Corporation price-eps-surprise | Albemarle Company Quote
What Our Mannequin Unveils for ALB Inventory
Our confirmed mannequin doesn’t conclusively predict an earnings beat for Albemarle this season. The mixture of a constructive Earnings ESP and a Zacks Rank #1 (Robust Purchase), 2 (Purchase) or 3 (Maintain) will increase the probabilities of an earnings beat. However that’s not the case right here.
Earnings ESP: Earnings ESP for ALB is +13.21%. The Zacks Consensus Estimate for earnings for the third quarter is at present pegged at a lack of 31 cents. You may uncover one of the best shares to purchase or promote earlier than they’re reported with our Earnings ESP Filter.
Zacks Rank: ALB at present carries a Zacks Rank #4 (Promote).
Primary Supplies Shares That Warrant a Look
Listed below are some firms within the primary supplies house you might need to contemplate as our mannequin exhibits they’ve the precise mixture of parts to submit an earnings beat this quarter:
Royal Gold, Inc. RGLD, scheduled to launch third-quarter earnings on Nov. 6, has an Earnings ESP of +1.13%.
The Zacks Consensus Estimate for Royal Gold’s earnings for the third quarter is at present pegged at $1.33. RGLD at present carries a Zacks Rank #2. You may see the complete list of today’s Zacks #1 Rank stocks here.
Methanex Company MEOH, scheduled to launch earnings on Nov. 6, has an Earnings ESP of +53.67% and carries a Zacks Rank #3.
The consensus estimate for MEOH’s earnings for the third quarter is at present pegged at 44 cents.
Air Merchandise and Chemical compounds, Inc. APD, slated to launch earnings on Nov. 7, has an Earnings ESP of +1.63% and carries a Zacks Rank #3 at current.
The consensus mark for APD’s fiscal fourth-quarter earnings is at present pegged at $3.44.
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The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.
