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Sociedad Quimica (SQM) to Post Q4 Earnings: What's in the Cards?

Sociedad Quimica y Minera de Chile S.A. SQM is slated to release fourth-quarter 2022 results on Mar 1.

The company beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing the same once. It has a trailing four-quarter earnings surprise of around 37.4%, on average. It posted an earnings surprise of 13.2% in the last reported quarter. The company’s fourth-quarter results are likely to benefit from higher demand and prices.

Shares of Sociedad Quimica have gained 39.6% in the past year against 6.3% decline of the industry.

 

Zacks Investment Research
Zacks Investment Research


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Let’s see how things have shaped up for this announcement.

What Do the Estimates Say?

The Zacks Consensus Estimate for fourth-quarter sales of Sociedad Quimica is currently pegged at $3,175 million, which suggests a rise of around 192.8% year over year.

Some Factors to Watch

The company is likely to have gained from higher realized prices and strong demand in the fourth quarter. Higher sales volumes in lithium and iodine businesses are expected to have aided its top line and margins in the quarter.

Sociedad Quimica has been benefiting from favorable trends in the lithium market underpinned by strong electric vehicle sales. The expansion of lithium operations is also expected to have supported the company’s lithium sales volumes in the December quarter. Strong demand and limited supply are also likely to have boosted lithium prices in the quarter.

Iodine volumes are also expected to have been supported by growing demand following the post-pandemic recovery. The company is also expected to have gained from higher iodine prices in the fourth quarter. Higher prices are also likely to have supported sales in the Specialty Plant Nutrients segment.

Sociedad Quimica y Minera S.A. Price and EPS Surprise

 

Sociedad Quimica y Minera S.A. Price and EPS Surprise
Sociedad Quimica y Minera S.A. Price and EPS Surprise

Sociedad Quimica y Minera S.A. price-eps-surprise | Sociedad Quimica y Minera S.A. Quote

Zacks Model

Our proven model does not conclusively predict an earnings beat for Sociedad Quimica 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 Sociedad Quimica is 0.00%. The Zacks Consensus Estimate for earnings for the fourth quarter is currently pegged at $3.80. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Sociedad Quimica currently carries a Zacks Rank #4 (Sell).

Stocks That Warrant a Look

Here are some companies you may want to consider, as our model shows these have the right combination of elements to post an earnings beat this quarter:

Lithium Americas Corp. LAC, which is expected to release earnings soon, has an Earnings ESP of +48.68% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks Rank #1 stocks here.

The Zacks Consensus Estimate for LAC’s earnings for fourth quarter is currently pegged at a loss of 25 cents.

Alta Equipment Group Inc. ALTG, slated to release earnings on Mar 9, has an Earnings ESP of +130.77%.

The Zacks Consensus Estimate for Alta Equipment Group’s fourth-quarter earnings is currently pegged at 4 cents. ALTG currently carries a Zacks Rank #3.

Americas Gold and Silver Corporation USAS, expected to release earnings soon, has an Earnings ESP of +66.67%.

The Zacks Consensus Estimate for Americas Gold and Silver’s fourth-quarter bottom line is currently pegged at a loss of 2 cents. USAS currently carries a Zacks Rank #3.

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

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Sociedad Quimica y Minera S.A. (SQM) : Free Stock Analysis Report

Americas Gold and Silver Corporation (USAS) : Free Stock Analysis Report

Lithium Americas Corp. (LAC) : Free Stock Analysis Report

Alta Equipment Group Inc. (ALTG) : Free Stock Analysis Report

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Zacks Investment Research