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Albemarle (ALB) Earnings and Revenues Top Estimates in Q1

Albemarle Corporation ALB recorded a profit of $95.7 million or 84 cents per share in the first quarter of 2021, down from $107.2 million or $1.01 per share it earned a year ago.

Adjusted earnings for the reported quarter were $1.10 per share, up from $1.00 a year ago. It topped the Zacks Consensus Estimate of 79 cents.

Revenues rose 12% year over year to $829.3 million in the quarter. It surpassed the Zacks Consensus Estimate of $754 million. The company witnessed higher sales across all of its core segments. It also benefited from cost-savings initiatives.

Albemarle Corporation Price, Consensus and EPS Surprise

Albemarle Corporation Price, Consensus and EPS Surprise
Albemarle Corporation Price, Consensus and EPS Surprise

Albemarle Corporation price-consensus-eps-surprise-chart | Albemarle Corporation Quote

Segment Highlights

Sales from the Lithium unit rose around 18% year over year to $279 million in the reported quarter, aided by higher volumes that more than offset lower carbonate and technical grade pricing. Adjusted EBITDA was up roughly 35% year over year to $106.4 million, aided by higher sales.

The Bromine Specialties segment recorded sales of $280.4 million, up around 21% year over year. Sales were supported by higher demand for products across the portfolio and a favorable customer mix. Adjusted EBITDA was $94.6 million, up around 14% year over year. The company’s cost-savings initiatives and pricing offset higher raw materials costs.

The Catalysts unit recorded revenues of $220.2 million in the reported quarter, up around 6% year over year, supported by higher volumes. Adjusted EBITDA was $25.4 million, down roughly 46% year over year. The decline was due to cost impact from the winter storm in the U.S. Gulf Coast and lower prices, partly masked by cost-savings actions. The company saw higher hydroprocessing catalysts volumes due to timing of shipments. This was offset by reduced volumes for fluid catalytic cracking due to the impact of the winter storm.

Financial Position

Albemarle ended the quarter with cash and cash equivalents of roughly $569.9 million, up around 3% year over year. Long-term debt was $2,030 million, down around 35% year over year.

Cash flow from operations was $157.9 million for the quarter, up around 2% year over year.

Outlook

Moving ahead, Albemarle expects its performance for full-year 2021 to improve modestly on a year-over-year basis on a sustained recovery in global economic activities.

The company continues to expect net sales for 2021 between $3.2 billion and $3.3 billion. Moreover, adjusted EBITDA for the year has been forecast in the range of $810-$860 million. Albemarle also continue to see adjusted earnings per share in the band of $3.25 to $3.65 for 2021.

Price Performance

Albemarle’s shares are up 188.6% over a year compared with a 78.4% rise of its industry.

Zacks Rank & Key Picks

Albemarle currently carries a Zacks Rank #4 (Sell).

Better-ranked stocks worth considering in the basic materials space include Nucor Corporation NUE, Dow Inc. DOW and Impala Platinum Holdings Limited IMPUY.

Nucor has a projected earnings growth rate of 228.4% for the current year. The company’s shares have rallied around 129% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Dow has a projected earnings growth rate of 261.5% for the current year. The company’s shares have shot up around 113% in a year. It currently sports a Zacks Rank #1.

Impala Platinum has an expected earnings growth rate of 197.6% for the current fiscal. The company’s shares have surged around 233% in the past year. It currently carries a Zacks Rank #1.

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