Albemarle Corporation to Benefit From Increasing Lithium Prices

Albemarle Corporation (NYSE:ALB) reported first-quarter results that exceeded earnings expectations despite a sharp revenue decline, as resilience in its Specialties and Ketjen businesses helped offset weakness in lithium pricing.

The company posted an adjusted loss of $0.18 per share, narrower than the anticipated $0.50 loss and an improvement relative to Wall Street expectations, though it marked a significant decline from a $0.26 profit in the same period last year.

Revenue came in at $1.1 billion, down 21% year-over-year and slightly below the $1.18 billion analyst consensus. The decline was largely attributed to softer pricing in Albemarle’s Energy Storage segment, which is closely tied to the lithium market.

Adjusted EBITDA totaled $267 million, supported by strong performance in the company’s Specialties and Ketjen segments, which showed year-over-year growth despite broader pricing headwinds.

Albemarle maintained its full-year 2025 guidance, which includes a wide range for projected net sales—between $4.9 billion and $7.0 billion—reflecting continued volatility in global lithium prices.

Albemarle Corporation (NYSE:ALB) reported first-quarter results that exceeded earnings expectations despite a sharp revenue decline, as resilience in its Specialties and Ketjen businesses helped offset weakness in lithium pricing.

The company posted an adjusted loss of $0.18 per share, narrower than the anticipated $0.50 loss and an improvement relative to Wall Street expectations, though it marked a significant decline from a $0.26 profit in the same period last year.

Revenue came in at $1.1 billion, down 21% year-over-year and slightly below the $1.18 billion analyst consensus. The decline was largely attributed to softer pricing in Albemarle’s Energy Storage segment, which is closely tied to the lithium market.

Adjusted EBITDA totaled $267 million, supported by strong performance in the company’s Specialties and Ketjen segments, which showed year-over-year growth despite broader pricing headwinds.

Albemarle maintained its full-year 2025 guidance, which includes a wide range for projected net sales—between $4.9 billion and $7.0 billion—reflecting continued volatility in global lithium prices.

On Monday, May 6, 2024, Ben Isaacson from Scotiabank revised the price target for Albemarle Corporation (ALB:NYSE), setting it at $150, down from a previous target of $160. This new target, as reported by TheFly, suggests a potential increase of about 15.7% from the stock's current trading price of $129.65. This adjustment in the price target comes shortly after Albemarle's first-quarter earnings call for 2024, which was held on May 2, 2024. The call was a significant event, attended by analysts from leading financial institutions, indicating a keen interest in the company's financial health and strategic direction.

During the earnings call, Albemarle's executive team, including CEO Kent Masters and CFO Neal Sheorey, shared insights into the company's performance and future outlook. The discussion particularly focused on the specialties and energy storage segments, areas critical to Albemarle's growth strategy. The presence of analysts from prestigious firms such as KeyBanc Capital, RBC Capital, and Bank of America underscores the investment community's significant interest in Albemarle's operations and industry positioning.

The earnings call revealed that Albemarle's stock had seen a modest increase of 1.07%, with the price moving up by $1.37. This movement occurred within a trading range of $127.65 to $131.39 for the day. Over the past year, ALB's stock has experienced considerable volatility, trading between a high of $247.44 and a low of $106.69. Despite these fluctuations, the company maintains a solid market capitalization of approximately $15.22 billion and a trading volume of 794,358 shares.

The adjustment of the price target by Scotiabank's Ben Isaacson to $150, following the earnings call, reflects a recalibration of expectations based on Albemarle's current financial performance and market conditions. The detailed discussion during the earnings call, highlighting the company's strategic initiatives in specialties and energy storage, provides a backdrop to understanding the potential growth avenues for Albemarle. This, combined with the stock's recent performance and the broader interest from the financial community, paints a comprehensive picture of Albemarle's market position and future prospects.

Albemarle (NYSE:ALB) shares rose more than 1% pre-market today after Berenberg analysts upgraded the company to Buy from Hold, setting a new price target of $160, up from $130. This change follows a period where Albemarle's 2024 outlook and a surprise $2.3 billion convertible preferred stock issuance tempered market expectations, offering a reset point.

Going forward, the analysts anticipate increased lithium production and potential price rises, alongside no further equity fundraising needs. Recent concerns about electric vehicle (EV) sales growth are viewed as an opportunity to buy, as the core growth drivers for lithium miners remain solid. Signs of stabilization in spodumene prices suggest lithium prices may hold or even increase. The recent capital raise positions Albemarle to continue its expansion and solidify its market leadership amid challenging conditions expected in 2024.

Albemarle Corporation (NYSE:ALB) announced further revision for its full 2022-year guidance, which reflects primarily the additional implementation of index-referenced variable-price contracts for battery grade lithium sales. The company now expects Lithium pricing to be up 140% year-over-year, compared to the prior estimate of up 100% year-over-year.

Net sales are now expected to range from $5.8 billion to $6.2 billion, compared to the previous outlook range of $5.2 billion to $5.6 billion and the Street estimate of $5.44 billion. Adjusted EBITDA is now expected in the range of $2.2 - $2.5 billion, compared to the previous outlook of $1.7 - $2.0 billion.

Adjusted diluted EPS is expected in the range of $12.30 - $15.00, compared to the previous outlook of $9.25 - $12.25 and the Street estimate of $10.88.

Albemarle Corporation (NYSE:ALB) announced further revision for its full 2022-year guidance, which reflects primarily the additional implementation of index-referenced variable-price contracts for battery grade lithium sales. The company now expects Lithium pricing to be up 140% year-over-year, compared to the prior estimate of up 100% year-over-year.

Net sales are now expected to range from $5.8 billion to $6.2 billion, compared to the previous outlook range of $5.2 billion to $5.6 billion and the Street estimate of $5.44 billion. Adjusted EBITDA is now expected in the range of $2.2 - $2.5 billion, compared to the previous outlook of $1.7 - $2.0 billion.

Adjusted diluted EPS is expected in the range of $12.30 - $15.00, compared to the previous outlook of $9.25 - $12.25 and the Street estimate of $10.88.

Albemarle Corporation (NYSE:ALB) announced further revision for its full 2022-year guidance, which reflects primarily the additional implementation of index-referenced variable-price contracts for battery grade lithium sales. The company now expects Lithium pricing to be up 140% year-over-year, compared to the prior estimate of up 100% year-over-year.

Net sales are now expected to range from $5.8 billion to $6.2 billion, compared to the previous outlook range of $5.2 billion to $5.6 billion and the Street estimate of $5.44 billion. Adjusted EBITDA is now expected in the range of $2.2 - $2.5 billion, compared to the previous outlook of $1.7 - $2.0 billion.

Adjusted diluted EPS is expected in the range of $12.30 - $15.00, compared to the previous outlook of $9.25 - $12.25 and the Street estimate of $10.88.