Albemarle (NYSE:ALB) gained 5.2% after the market closed on Wednesday after beating adjusted earnings estimates for the second quarter. The company’s revenues from lithium nearly tripled compared to the same period a year earlier due to rising prices of the metal used in electric vehicle battery production.
Albemarle (ALB) increased its guidance for adjusted EPS in FY 2022 to $19.25-$22.25, up from the previous range of $12.30-$15.00, and revenues of $7.1B-$7.5B, up from $5.8B-$6.2B. These figures are significantly higher than analysts’ consensus estimates, which are $13.96 per share and $6.07 billion, respectively.
The company also increased its full-year guidance for adjusted EBITDA from $3.2 billion to $3.5 billion from $2.2 billion to $2.5 billion. It increased its net cash from operations guidance to $1.4 billion to $1.7 billion from $550 million to 850 million while maintaining its projected capital spending at $1.3 billion to $1.5 billion.
The company’s net income during the second quarter decreased to $406 million, or $3.46 per share, from $424.6 million, or $3.62 per share, in the same period of the previous fiscal year.
Albemarle (ALB) forecasts FY 2022 adjusted EBITDA will rise by 500% -550% Y/Y, up from previous guidance of a 300% gain, as average realized pricing is now expected to increase 225% -250% due to renegotiated contracts and increased market pricing, and an 18% increase in sales volumes.
Q2 lithium net sales increased 178% Y/Y to $891.5 million. This was due to higher pricing related to renegotiated contracts and increased market pricing.
The company anticipates that full-year segment-adjusted EBITDA will increase between 25 and 30% based on higher pricing due to strong demand in various end markets. Bromine’s net sales increased by 35% to a total of $377.8 million during the second quarter. The primary driver of this growth was increased pricing, while higher volumes contributed an additional 4%.
Q2 Catalysts net sales increased by 42% to $210.3 million due to 37% higher volumes and higher pricing. The company anticipates that full-year segment-adjusted EBITDA will fall by 25% to 65% due to the continued volatility of raw material costs and natural gas pricing in Europe as a result of the conflict in Ukraine.
The price return on Albemarle (ALB) stock indicates a gain of 1% so far this year and an increase of 15% over the previous year.
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