NYSE$ALB

Albemarle Corporation · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Albemarle's Q4 2023 results were impacted by lower lithium market prices and a lower of cost or net realizable value (LCM) pre-tax charge.

Albemarle Corporation reported a decrease in net sales for Q4 2023, primarily due to lower lithium market pricing, despite increased volumes in Energy Storage and Ketjen. The company experienced a net loss, driven by lower lithium market prices and a significant LCM charge.

  • Net sales decreased by 10% to $2.4 billion, influenced by lower lithium market pricing.
  • Net loss attributable to Albemarle was $617.7 million, a significant decrease from the prior year.
  • Adjusted EBITDA was $(315) million, impacted by lower lithium market pricing and an LCM charge.
  • The company announced proactive measures to unlock >$750 million of cash flow.

Headline financials

Total Revenue

$2.36B

Previous: $2.62B-10.1%
EPS (adj)

$1.85

Previous: $8.62-78.5%
Adjusted EBITDA

-$315M

Previous: $1.24B-125.3%
Capital Expenditures

-$684M

Previous: $446M-253.5%
Net Income

-$618M

Previous: $1.13B-154.5%
Operating Income

-$850M

Previous: $833M-202.0%
Gross Profit

-$704M

Previous: $1B-170.3%
R&D Expense

$22.8M

No prior period
Stock-Based Comp

$7.08M

Previous: $5.83M+21.5%

Revenue & EPS history

Albemarle · Revenue · Quarterly

$2.36B

Q4 2023-10.1%vs Q4 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

Albemarle introduced full-year 2024 outlook considerations, including Energy Storage ranges based on lithium market price scenarios and utilizing an updated adjusted EBITDA definition.

Tailwinds

  • Projected increase in Energy Storage volumes of 10% to 20% in 2024 compared to 2023.
  • Assumes flat market pricing flowing through Energy Storage’s current contract book.
  • Spodumene pricing averages 10% of the lithium carbonate equivalent (LCE) price.
  • Increased volumes driven by expected high refinery utilization for Ketjen.
  • Higher pricing driven primarily by Clean Fuel Technology (CFT) products for Ketjen.

Headwinds

  • Specialties outlook reflects continued softness in consumer electronics and elastomers.
  • Demand visibility is expected to remain low in the first half of 2024 for Specialties.
  • Specialties outlook assumes operations continue as normal in the Middle East, with some shipping delays and tighter availability of processing materials.
  • Ranges are based on a projected increase in Energy Storage volumes of 10% to 20% in 2024 compared to 2023.
  • Scenarios also assume spodumene pricing averages 10% of the lithium carbonate equivalent (LCE) price, while other costs are assumed to be constant.

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 Q4 2023

Historical avgQ4 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%

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