NYSE$ALB

Albemarle Corporation · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Albemarle's net sales increased by 10%, driven by higher volumes in the Energy Storage business, strategic partnerships were formed, and the MARBL joint venture was streamlined.

Albemarle Corporation reported a 10% increase in net sales for the third quarter of 2023, reaching $2.3 billion. This growth was primarily driven by higher volumes in the Energy Storage business. The company's net income was $302.5 million, or $2.57 per diluted share, and adjusted diluted EPS was $2.74. Albemarle is on track to achieve more than $170 million in productivity benefits in 2023.

  • Net sales increased by 10% to $2.3 billion.
  • Net income was $302.5 million, or $2.57 per diluted share.
  • Adjusted diluted EPS was $2.74.
  • Adjusted EBITDA was $453.3 million.

Headline financials

Total Revenue

$2.31B

Previous: $2.09B+10.5%
EPS (adj)

$2.74

Previous: $7.50-63.5%
Adjusted EBITDA

$453M

Previous: $1.2B-62.2%
Capital Expenditures

-$1.47B

Previous: -$816M-79.6%
Free Cash Flow

-$1.16B

Previous: $81.3M-1530.4%
Net Income

$303M

Previous: $897M-66.3%
Operating Income

-$140M

Previous: $891M-115.7%
Gross Profit

$54.9M

Previous: $1.04B-94.7%
Cash & Equivalents

$1.6B

Previous: $1.38B+15.8%
Total Assets

$18.9B

Previous: $13.8B+36.6%
R&D Expense

$21.1M

No prior period
Stock-Based Comp

$9.45M

Previous: $9.42M+0.3%

Revenue & EPS history

Albemarle · Revenue · Quarterly

$2.31B

Q3 2023+10.5%vs Q3 2022
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

Net sales are expected to increase 30% to 35% over the prior year, primarily driven by new mining and conversion capacity delivering 30% to 35% volumetric growth in Energy Storage. Adjusted EBITDA is expected to be flat to down 5% year over year, primarily due to lower Energy Storage pricing as well as the realization of higher spodumene pricing in costs of goods sold from our JV-owned mines.

Tailwinds

  • Net sales are expected to increase 30% to 35% year-over-year.
  • Energy Storage volumes are projected to increase 30% to 35% in 2023 compared to 2022.
  • Full year realized pricing increases are expected to range from 15% to 20% compared to the prior year, assuming recent lithium market prices continue through the remainder of 2023.
  • Construction of Meishan is progressing on-budget and ahead of schedule with mechanical completion expected in early 2024.
  • Cash from operations of $1.4 billion for the nine-months ended September 30, 2023 increased $467.9 million versus the prior year period.

Headwinds

  • Adjusted EBITDA is expected to be flat to down 5% year over year.
  • Energy Storage net sales for the full year are estimated to range between $7.0 billion and $7.2 billion, below our previous outlook primarily due to lower lithium market index pricing.
  • Adjusted EBITDA is anticipated to be between $2.9 billion and $3.0 billion, below our previous outlook due to lower expected pricing and lower sales volumes at our Talison joint venture.
  • Specialties operations continue as usual without supply chain disruption. We continue to monitor the impact of the ongoing situation in the Middle East on our operations.
  • The reduced adjusted EBITDA outlook primarily reflects impacts from timing of shipments and customer mix for Ketjen.

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 Q3 2023

Historical avgQ3 2023

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro