ALB Earnings Prediction
The chart below shows how ALB performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ALB sees a +6.01% change in stock price 10 days leading up to the earnings, and a +3.75% change 10 days following the report. On the earnings day itself, the stock moves by -0.79%. This data can give you a slight idea of what to expect for the next quarter's release.
ALB Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.35B
-41.37%
-5.29%
Gross Margin
-7.68%
-422.69%
937.84%
Operating Margin
-20.70%
273.65%
52.65%
Net Margin
-78.29%
-664.05%
533.93%
EPS
-9.45
-467.70%
382.14%
No Data Available
ALB Earnings Analysis
Albemarle Corporation Corporation (ALB.N) Earnings Conference Call
Positive
Cash Liquidity Strength: 1. Strong Cash Position: Albemarle ended Q3 with available liquidity of $3.4 billion, including $1.7 billion in cash and cash equivalents, ensuring robust financial flexibility.
Cash Flow Efficiency: 2. Operating Cash Flow Conversion: The company achieved an operating cash flow conversion of over 100% in Q3, driven by effective working capital management and operational discipline.
Energy Storage Volume Surge: 3. Year-over-Year Volume Growth: Energy Storage volumes are expected to grow more than 20% year-over-year for full-year 2024, reflecting strong demand and successful ramp-up of new facilities.
Cost Efficiency Goals: 4. Cost Improvement Initiatives: Albemarle is targeting $300 million to $400 million in cost and productivity improvements, with a 40% to 50% run rate expected by the end of 2024, enhancing operational efficiency.
EBITDA Improvement Trends: 5. Positive EBITDA Trends: Adjusted EBITDA for the Specialties segment improved year-over-year due to productivity enhancements and stronger end market demand, indicating a positive operational trajectory.
Negative
Revenue Decline Analysis: 1. Significant Revenue Decline: Albemarle reported net sales of $1.4 billion in Q3 2024, a 41% decrease from $2.3 billion in the same quarter last year, primarily due to lower lithium pricing.
Significant Financial Loss: 2. Substantial Losses: The company recorded a loss attributable to Albemarle of $1.1 billion, translating to a diluted loss per share of $9.45, with an adjusted diluted loss per share of $1.55.
Capital Project Write-Offs: 3. Major Capital Project Write-Offs: A pre-tax charge of $861 million was incurred related to capital project asset write-offs at Kemerton 3 and the care and maintenance of Kemerton 2, indicating significant financial strain.
Capital Expenditure Reduction: 4. Reduced Capital Expenditures: Albemarle is driving a year-over-year reduction in full-year 2025 capital expenditures by at least $800 million, approximately 50% lower than 2024, reflecting a contraction in growth investment.
Reduced Cash Flow Outlook: 5. Lower Expected Cash Flow: The company anticipates lower cash conversion in Q4 2024 due to cash outflows associated with workforce reductions and a lack of expected dividends from the Talison joint venture, which were previously around $70 million to $80 million.
ALB FAQs
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ALB Earning Call Sentiment
Albemarle Corporation (ALB) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
ALB.N
1.86%Positive
The earnings call highlights several concerns: a significant drop in net sales and a substantial loss, despite cost and productivity improvements. The Q&A reveals management's reluctance to provide clear guidance, particularly on future EBITDA and CapEx. The shareholder return plan includes lower dividends, and the company faces regulatory challenges in Europe. While there's a positive outlook for lithium demand, the immediate financial metrics and unclear guidance suggest a negative sentiment. The stock is likely to experience a negative reaction, potentially between -2% and -8%.
