NYSE$ALB

Albemarle Corporation · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported a 12% sales growth, driven by strong sales from Lithium and Bromine businesses, and successfully managed through the impact of the U.S. Gulf Coast winter storm.

Albemarle Corporation announced its first quarter results with a 12% increase in net sales and a 17% increase in adjusted EBITDA. The company is progressing with its lithium expansion projects and expects to start approving Wave 3 expansion projects during the second quarter.

  • Net income of $95.7 million, or $0.84 per diluted share; Adjusted diluted EPS of $1.10, an increase of 10%
  • Net sales of $829.3 million, an increase of 12%
  • Adjusted EBITDA of $230.1 million an increase of 17%
  • Entered into a definitive agreement to sell the Fine Chemistry Services business to W. R. Grace & Co. for proceeds of approximately $570 million

Headline financials

Total Revenue

$829M

Previous: $739M+12.2%
EPS (adj)

$1.10

Previous: $1.00+10.0%
Adjusted EBITDA

$230M

Previous: $196M+17.4%
Capital Expenditures

-$180M

Previous: -$215M+16.2%
Free Cash Flow

-$84M

Previous: -$107M+21.7%
Net Income

$95.7M

Previous: $107M-10.8%
Operating Income

$156M

Previous: $124M+25.7%
Gross Profit

$264M

Previous: $242M+9.0%
Cash & Equivalents

$570M

Previous: $553M+3.0%
Total Assets

$10.3B

Previous: $9.85B+4.5%
Stock-Based Comp

$2.56M

Previous: $2.5M+2.4%

Revenue & EPS history

Albemarle · Revenue · Quarterly

$829M

Q1 2021+12.2%vs Q1 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Albemarle · $2.31B total across 3 segments · Q3 2023

  • Energy Storage
    $1.7B+13.1%
  • Specialties
    $353M-0.6%
  • Ketjen
    $261M+10.5%

Forward guidance

Albemarle continues to expect its full year 2021 operating performance to improve modestly relative to full year 2020, assuming continued recovery from the global economic downturn.

Tailwinds

  • FY 2021 volumes are expected to be higher year-over-year due to North American plant restarts, productivity improvements, and tolling.
  • Average realized pricing is expected to increase sequentially but remain flat compared to 2020.
  • We continue to expect FY 2021 results to be modestly higher than the previous year due to continued economic recovery and improvements in certain end markets, including electronics, and building and construction, along with on-going cost savings initiatives and pricing.
  • The company expects higher costs related to project start-ups, partially offset by productivity improvements.
  • The company's Lithium business outlook has improved.

Headwinds

  • The winter storm in the U.S. Gulf Coast during Q1 led to lost production at the Magnolia, Arkansas site, which is expected to impact sales and adjusted EBITDA in mid-2021.
  • The outlook for the company's Catalysts business expectations are lower.
  • We expect 2021 adjusted EBITDA to be lower year-over-year due to the impact of the winter storm, FCC order delays, product mix, and the previously disclosed change in order patterns from a large North American customer.
  • COVID-19 pandemic uncertainties.
  • Possible changes in economic and business conditions

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.5%

Avg return

Earnings day

+1.5%

Avg return

5 days after

+1.5%

Avg return

30 days after

60%

41 / 68 earnings

Positive

+20.0%

Q1 2022

Best reaction

-18.4%

Q4 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.3%+6.4%-19.2%
Q4 2025-9.4%-3.7%-9.8%
Q3 2025-0.3%+13.0%+36.1%
Q1 2025+1.3%-1.8%-4.8%
Q4 2024+3.5%+9.1%-1.8%
Q3 2024+0.2%+10.7%+5.2%
Q2 2024+0.7%-9.7%-2.4%
Q1 2024+4.1%+8.7%+1.9%
Q4 2023+4.7%+9.3%+8.9%
Q3 2023-1.7%-5.8%-0.5%
Q2 2023-4.2%-5.4%-3.7%
Q1 2023+1.3%+7.2%+20.2%
Q4 2022+5.5%-4.7%-23.0%
Q3 2022-1.6%+2.7%+1.9%
Q2 2022-3.7%+0.4%+6.6%
Q1 2022+20.0%+12.4%+27.2%
Q4 2021-18.4%-21.0%-17.9%
Q3 2021+4.9%+7.1%-3.3%
Q2 2021+5.6%+11.8%+16.9%
Q1 2021-5.7%-1.6%+7.1%
Q4 2020-12.8%-3.5%-6.6%
Q3 2020+8.1%+19.6%+42.6%
Q2 2020-2.3%+2.2%+11.0%
Q1 2020+2.2%+10.2%+44.2%
Q4 2019+6.3%+1.0%-39.7%
Q3 2019+6.0%+0.5%-4.6%
Q2 2019+12.3%+2.9%-3.4%
Q1 2019-4.3%-9.6%-8.9%
Q4 2018+7.4%+10.2%-0.5%
Q3 2018-1.8%-9.0%-17.8%
Q2 2018+6.6%+6.3%+5.4%
Q1 2018-2.3%-1.5%-5.3%
Q4 2017-8.8%-13.7%-15.8%
Q3 2017-1.6%+0.2%-8.8%
Q2 2017-3.5%-8.6%-0.8%
Q1 2017+0.3%+1.1%+5.3%
Q4 2016+9.2%+12.7%+13.0%
Q3 2016-0.9%-3.7%+6.4%
Q2 2016-2.7%-2.6%-2.9%
Q1 2016+11.0%
Q4 2015+4.2%
Q3 2015-9.6%
Q2 2015-3.5%
Q1 2015+4.7%
Q4 2014-15.3%
Q3 2014+0.5%
Q2 2014-8.8%
Q1 2014+1.6%
Q4 2013+2.6%
Q3 2013+5.0%
Q2 2013-3.0%
Q1 2013-6.3%
Q4 2012+0.4%
Q3 2012+3.6%
Q2 2012-3.0%
Q1 2012-0.6%
Q4 2008+1.2%
Q4 2011+1.2%
Q3 2011+8.5%
Q2 2011-1.1%
Q1 2010+3.6%
Q1 2011+1.2%
Q4 2010+2.7%
Q3 2010+1.5%
Q3 2009+1.5%
Q2 2010+1.3%
Q4 2009+1.3%
Q2 2009+1.3%

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