Charlotte, North Carolina-based, Albemarle Corporation (ALB) develops, manufactures, and markets engineered specialty chemicals worldwide. With a market cap of $11.3 billion, Albemarle operates through Energy Storage, Specialties, and Ketjen segments. It is expected to announce its Q3 earnings after the market closes on Wednesday, Nov. 6.
Ahead of the event, analysts expect Albemarle to report a loss of $0.21 per share, down 107.7% from the profit of $2.74 per share reported in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in one of the last four quarters while missing on three other occasions. Its adjusted EPS for the last reported quarter dipped 99.5% year-over-year to $0.04, missing the consensus estimates by 92.5%.
For fiscal 2024, analysts expect Albemarle to report an adjusted EPS of $0.37, down 98.3% from $22.25 in fiscal 2023. However, in fiscal 2025, its adjusted EPS is expected to rebound 597.3% year-over-year to $2.58.
ALB stock is down 33.2% on a YTD basis, significantly underperforming the S&P 500 Index’s ($SPX) 22.7% gains and the Materials Select Sector SPDR Fund’s (XLB) 12.2% returns over the same time frame.
Shares of Albemarle dipped marginally following the release of its Q2 earnings on Jul. 31, primarily due to a significant 39.7% year-over-year drop in net sales to $1.4 billion, driven by lower pricing in the Energy Storage segment. Additionally, the company reported a net loss of $188.2 million, compared to the $650 million net income in the same quarter last year, partially due to an after-tax charge of $215 million related to capital project asset write-offs and contract cancellations. Moreover, its adjusted EBITDA declined by 69.5% year-over-year to $386.4 million due to margin compression and reduced equity earnings as a result of lower lithium market pricing.
The consensus opinion on ALB stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 24 analysts covering the stock, nine recommend “Strong Buy,” one advises “Moderate Buy,” 12 advocate “Hold,” and two suggest a “Strong Sell” rating. The mean price target of $111.69 represents a potential upside of 15.8% from current price levels.
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