NYSE$ALB

Albemarle Corporation · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Albemarle reported strong sales growth and raised guidance.

Albemarle Corporation announced strong second-quarter results with net sales of $1.48 billion, a 91% increase year-over-year, and net income of $406.8 million. The company raised its full-year 2022 guidance due to strong demand and pricing trends, particularly in Lithium and Bromine.

  • Net sales increased by 91% to $1.48 billion.
  • Net income was $406.8 million, or $3.46 per diluted share.
  • Adjusted EBITDA increased by 214% to $610 million.
  • Full-year 2022 net sales are expected to be $7.1 - $7.5 billion, and adjusted EBITDA is expected to be $3.2 - $3.5 billion.

Headline financials

Total Revenue

$1.48B

Previous: $774M+91.2%
EPS (adj)

$3.45

Previous: $0.89+287.6%
Adjusted EBITDA

$610M

Previous: $195M+213.6%
Capital Expenditures

-$503M

Previous: -$397M-26.6%
Free Cash Flow

-$95.8M

Previous: $27.7M-446.2%
Net Income

$407M

Previous: $425M-4.2%
Operating Income

$434M

Previous: $542M-20.0%
Gross Profit

$580M

Previous: $248M+133.6%
Cash & Equivalents

$931M

Previous: $824M+13.0%
Total Assets

$12.5B

Previous: $10.8B+16.0%
Stock-Based Comp

$11M

Previous: $5.87M+87.3%

Revenue & EPS history

Albemarle · Revenue · Quarterly

$1.48B

Q2 2022+91.2%vs Q2 2021
Beat estimate in 8 of 15 quarters(53%)
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's outlook for 2022 has continued to improve based on expectations for ongoing demand strength and tightness in the markets it serves. Net sales guidance was revised upward primarily due to continued strength in pricing in its Lithium and Bromine businesses. Adjusted EBITDA guidance is also higher based on pricing expectations slightly offset by inflationary cost pressures, particularly for natural gas in Europe and raw materials. We now expect to be free cash flow positive in 2022.

Tailwinds

  • Net sales of $7.1 - $7.5 billion
  • Adjusted EBITDA of $3.2 - $3.5 billion
  • Adjusted EBITDA Margin 45% - 47%
  • Adjusted Diluted EPS $19.25 - $22.25
  • Net Cash from Operations $1.4 - $1.7 billion

Headwinds

  • Inflationary cost pressures, particularly for natural gas in Europe
  • Inflationary cost pressures for raw materials
  • Potential downside in the event of a material correction in lithium market pricing
  • Potential volume shortfalls (e.g., delays in acquisitions or expansion projects)
  • Continued volatility of raw materials costs and natural gas pricing in Europe related to the war in Ukraine

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 Q2 2022

Historical avgQ2 2022

+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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