Albemarle Corporation Faces Decreasing EPS Ahead of Q1 2025 Earnings
With a market cap of $6.8 billion, Charlotte, North Carolina-based Albemarle Corporation (ALB) stands as a leading player in the specialty chemicals sector. The company delivers innovative solutions across diverse industries, such as energy storage, automotive, construction, and electronics. Operating through three primary segments—Energy Storage, Specialties, and Ketjen—Albemarle offers advanced products that include lithium compounds, bromine-based chemicals, and clean fuel technologies.
Anticipated Q1 2025 Earnings Results
Albemarle is set to announce its fiscal Q1 2025 earnings after the market closes on Wednesday, Apr. 30. Analysts project that ALB will report a loss of $0.62 per share, a notable decline from EPS of $0.26 reported in the same quarter last year. The company has consistently missed Wall Street’s bottom-line estimates over its last four quarterly reports.
Fiscal Year 2025 Projections
Looking ahead, analysts predict that Albemarle may post a loss of $1.46 per share for fiscal 2025, which represents an increase of 37.6% from a loss of $2.34 per share for fiscal 2024. However, there is optimism for growth in the following year, with EPS expected to surge 218.5% year-over-year to reach $1.73 in fiscal 2026.
Stock Performance and Market Context
Over the past year, ALB has declined 49.6%, substantially trailing the broader S&P 500 Index, which achieved an 8.6% gain, as well as the Materials Select Sector SPDR Fund (XLB), which experienced a nearly 7% drop during the same period.
Recent Q4 2024 Performance
On Feb. 12, Albemarle disclosed weaker-than-expected results for Q4 2024, reporting an adjusted loss of $1.09 per share alongside revenue of $1.2 billion. Interestingly, ALB shares rose by 3.5% the following day, fueled by investor enthusiasm regarding the company’s robust cost-cutting strategies, which include plans to reduce capital expenditures for 2025 to between $700 million and $800 million—approximately half of 2024’s budget. Furthermore, Albemarle revealed a GAAP profit of $33.6 million, a notable recovery from the prior year’s loss of $617.7 million, thus assuaging investor concerns amid low lithium prices.
Analysts’ Outlook
The consensus view among analysts regarding Albemarle’s stock is cautiously optimistic, holding a “Moderate Buy” rating overall. Twenty-five analysts cover the stock, with eight recommending a “Strong Buy,” one suggesting a “Moderate Buy,” 14 advising a “Hold,” and two issuing a “Strong Sell.” Currently, ALB trades below the average analyst price target of $90.40.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
