- Albemarle’s Adjusted EPS for Q2 was 4.0 cents, significantly down from $7.33 a year ago. Analysts had estimated 48 cents.
- The company’s net sales for the quarter were $1.43 billion, a 40% decrease year-over-year. However, this surpassed the estimate of $1.33 billion.
- Adjusted EBITDA came in at $386.4 million, marking a 63% decline compared to the previous year but still above the estimated $277 million.
- Albemarle reported a gross loss of $10.6 million, compared to a profit of $558.5 million in the same quarter last year. Analysts had expected a profit of $160.8 million.
- Energy storage net sales were $830.1 million, a 53% drop year-over-year, yet higher than the $757.8 million estimate.
- Energy storage adjusted EBITDA fell 70% to $283.0 million, exceeding the estimate of $205.8 million.
- Specialties net sales decreased by 9.9% to $334.6 million, closer to the estimated $337 million.
- Specialties adjusted EBITDA dropped by 10% to $54.2 million, missing the estimate of $62.1 million.
- Net sales for Ketjen increased by 13% to $265.7 million, surpassing the estimate of $257.6 million.
- Ketjen adjusted EBITDA declined by 12% to $37.8 million, though it was better than the $32 million that analysts had estimated.
- For the full-year 2024, Albemarle’s capital expenditures are expected to reach the high end of the $1.7 billion to $1.8 billion range due to the timing of capital spending.
- Market analysts’ recommendations include 16 buys, 13 holds, and 2 sells.
Albemarle Corp on Smartkarma
Analysts on Smartkarma, like Baptista Research, have provided insightful coverage on Albemarle Corporation, a key player in the energy sector. In their report titled “Albemarle Corporation: A Tale Of Expansion of New Facilities and Margin Recovery!”, the first quarter earnings of 2024 showed promising figures with a net sales of $1.4 billion and adjusted EBITDA of $291 million. Despite a 47% decline year-over-year mostly due to reduced prices, the company saw impressive volumetric growth driven by the energy storage segment. Albemarle also demonstrated adeptness in managing market dynamics and achieving over $9 million in productivity and restructuring cost savings, aligning with the current market environment.
Further, Baptista Research‘s analysis in “Albemarle Corporation: Is The EV Demand Actually Flattening & Impacting Their Performance?” highlighted the company’s robust performance in 2023. With net sales reaching $9.6 billion, a 31% increase from the previous year, predominantly fueled by a 21% volume growth. The energy storage sector specifically showcased exceptional 35% volumetric growth. Albemarle reported an adjusted EBITDA of $2.8 billion or $3.4 billion, excluding certain charges, indicating a strong financial position for the company amidst evolving market conditions.
A look at Albemarle Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Albemarle Corp, a company specializing in chemicals production, has received favorable Smart Scores across various factors. With a strong Value score of 4, the company is perceived as offering good value for investors. While its Dividend, Growth, and Resilience scores are at a solid 3, indicating a stable performance in these areas. However, the Momentum score is comparatively lower at 2, suggesting a slower pace in terms of market momentum.
Despite its slightly lower Momentum score, Albemarle Corp‘s overall outlook appears positive with its strong scores in Value, Dividend, Growth, and Resilience. As a producer of specialty and fine chemicals used in various industries such as plastics, pharmaceuticals, and agriculture, the majority of its products are manufactured in the United States. This indicates a stable and valuable investment opportunity for those seeking long-term growth potential in the chemicals sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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