Charlotte, North Carolina-based Albemarle Corporation (ALB) develops, manufactures, and markets engineered specialty chemicals worldwide. With a market cap of $10.8 billion, Albemarle operates through Energy Storage, Specialties, and Ketjen segments. It is expected to announce its Q2 earnings after the market closes on Wednesday, July 31.
Ahead of the event, analysts expect Albemarle to report a profit of $0.58 per share, down 92.1% from $7.33 per share reported in the year-ago quarter. The company surpassed Wall Street’s EPS projection in two of the past four quarters while missing on two other occasions. Its EPS for the last reported quarter declined by 97.5% from the prior-year quarter to $0.26 while missing the consensus estimates by 25.7% amid lower prices.
Looking ahead to fiscal 2024, analysts expect Albemarle to report an EPS of $1.57, down 92.9% from $22.25 in fiscal 2023. However, in fiscal 2025, its EPS is expected rebound and grow 175.2% annually to $4.32.
ALB stock is down 36.3% on a YTD basis, substantially underperforming the S&P 500 Index’s ($SPX) 15.4% gains and the S&P 500 Materials Sector SPDR’s (XLB) 5.3% returns over the same time frame.
Despite surpassing its Q1 revenue expectations, the company failed to beat its bottom-line expectation, sending the stock down 1.1% on May 1, after the release of its Q1 earnings report. However, the stock climbed up in the next trading sessions.
In Q1, Albemarle's revenues plummeted 47.3% annually, with net income nosediving 98.7%. The Energy Storage segment’s 58.8% sales drop, driven by an 89% price fall despite a 31% volume rise, and the Specialties segment’s 24.5% sales fall, marked by declining volumes and pricing, were key factors. However, the resilient Ketjen segment saw an 11.9% revenue boost, with growth in both volumes and pricing. Throughout, Albemarle remained steadfast in its dividend payouts, affirming its commitment to shareholders.
The consensus opinion on Albemarle stock is moderately bullish, with a “Moderate Buy” rating overall. Out of the 24 analysts covering it, 11 recommend a “Strong Buy,” one advises a “Moderate Buy,” 10 suggest a “Hold,” and two advocate a “Strong Sell” rating.
The average target price for Albemarle stock is $136.38, indicating a potential upside of 48.1% from current price levels.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
