Albemarle (ALB) closed at $79.49 in the latest trading session, marking a +1.26% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 1.08%. Elsewhere, the Dow saw an upswing of 0.92%, while the tech-heavy Nasdaq appreciated by 1.41%.Heading into today, shares of the specialty chemicals company had lost 6.08% over the past month, lagging the Basic Materials sector's loss of 1.64% and outpacing the S&P 500's loss of 8.26% in that time.Investors will be eagerly watching fo ...

It has been about a month since the last earnings report for Albemarle (ALB) . Shares have lost about 8.6% in that time frame, outperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Albemarle due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.How Have Estimates Been Moving Since Then?It turns o ...

Core Viewpoint - The current market focus on the technology sector, particularly artificial intelligence, has led to undervaluation of other sectors, presenting opportunities for value investors [1][2]. Group 1: Cleveland-Cliffs Inc. (NYSE: CLF) - Institutional investors, such as Dimensional Fund Advisors, increased their holdings in Cleveland-Cliffs by 3.1%, raising their net position to $199.7 million, which represents 4.3% ownership [4]. - The anticipated rise in demand for domestic steel production due to recent trade tariffs is expected to drive higher prices for Cleveland-Cliffs [5]. - The current consensus price target for Cleveland-Cliffs is $16.7 per share, indicating a potential upside of up to 50% from current trading levels, as the stock is currently at 49% of its 52-week high [6]. - There has been an 8.2% decline in short interest for Cleveland-Cliffs over the past month, indicating a shift in sentiment among bearish traders [7]. Group 2: Albemarle Co. (NYSE: ALB) - Analysts forecast that Albemarle will achieve earnings per share (EPS) of $2.18 for Q2 2025, a significant improvement from a current net loss of $1.09 [8]. - The consensus price target for Albemarle is $109.7 per share, suggesting a potential rally of 35.4% from current levels, as the stock trades at 57% of its 52-week high [10][11]. - Albemarle offers a dividend payout of $1.62 per share, providing a yield of 2% for investors, which may attract more institutional investment [12]. Group 3: SentinelOne Inc. (NYSE: S) - Analysts from Oppenheimer initiated coverage on SentinelOne, which is currently trading at 75% of its 52-week high, indicating it is underperforming compared to other tech stocks [13]. - The Outperform rating from analysts suggests a valuation target of $32 per share for SentinelOne, representing a potential upside of 46.2% from current trading levels [14].

Group 1 - The article emphasizes the importance of classical value ratios such as low P/B, P/FCF, Owner Earnings discounting, PEG ratios, and the Graham Number for portfolio selection [1] - It advocates for self-indexing using the Dow Jones Industrial Average combined with Joel Greenblatt's Magic Formula to enhance tax efficiency [1] - The author has a background in private credit and CRE mezzanine financing, with significant experience in China and Asia [1] Group 2 - The article does not provide any specific company or industry analysis, focusing instead on the author's investment philosophy and strategies [2][3][4]

Group 1 - Albemarle Corporation is a global leader in providing essential elements for mobility, energy, connectivity, and health [1][3] - Kent Masters, chairman and CEO, will present at the BMO Capital Markets 2025 Global Metals, Mining & Critical Materials Conference on February 24 [1] - Neal Sheorey, chief financial officer, will participate in a fireside chat at the BofA Securities 2025 Global Agriculture and Materials Conference on February 26 [2] Group 2 - Live webcasts for both events will be available on Albemarle's investor relations website [2] - The company emphasizes its role in transforming essential resources into critical ingredients for various industries [3] - Albemarle provides a reliable and high-quality global supply of lithium and bromine for advanced solutions [3]

Group 1 - The article discusses the potential for investors to identify undervalued stocks that are mispriced by the market as February approaches [1][2] - Mark leads an investing group called Out Fox The Street, which provides stock picks and in-depth research aimed at uncovering potential multibaggers while managing portfolio risk through diversification [2] - The group offers features such as model portfolios, stock picks with identifiable catalysts, daily updates, real-time alerts, and community chat access for direct interaction with Mark [2] Group 2 - The article emphasizes the importance of conducting personal research or consulting a financial advisor before making investment decisions [3] - It highlights that past performance is not indicative of future results, and no specific investment recommendations are provided [4]

Financial Data and Key Metrics Changes - For Q4 2024, the company reported net sales of $1.2 billion and adjusted EBITDA of $251 million, with year-over-year EBITDA improvements across all business segments [6][11][12] - Full year 2024 adjusted EBITDA reached $1.1 billion, aligned with outlook considerations, driven by productivity and cost improvements, higher volumes, and strong contract performance [7][13] - The company generated $702 million in cash from operations with an operating cash conversion rate exceeding 60%, surpassing the target of 50% [7][28] Business Line Data and Key Metrics Changes - The Energy Storage segment saw a 26% year-over-year increase in sales volumes, exceeding initial guidance of 10% to 20% growth, attributed to successful project ramps and increased spodumene sales [7][12] - Adjusted EBITDA improved year-over-year in all three business segments, with notable contributions from higher volumes in specialties and reduced corporate costs [15][19] Market Data and Key Metrics Changes - The company provided outlook scenarios for lithium market prices, including a new $9 per kilogram scenario and updated ranges of $12 to $15 and $20 per kilogram, reflecting improved outlooks due to ongoing productivity enhancements [9][16] - Global electric vehicle registrations increased by 25% year-over-year in 2024, with significant growth in grid storage demand, which rose nearly 50% year-over-year [32][34] Company Strategy and Development Direction - The company is focusing on optimizing its conversion network, improving cost and efficiency, reducing capital expenditures, and enhancing financial flexibility [8][40] - Strategic initiatives include placing the Chengdu lithium conversion facility into care and maintenance and shifting capacity at the Qinzhou facility from hydroxide to carbonate to meet market demand [8][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving breakeven free cash flow in 2025, contingent on executing their plans effectively [10][31] - The company anticipates a modest volume-led recovery in specialties driven by strength in pharma, autos, and oilfield applications, while also expecting improvements in Ketjen results [25][32] Other Important Information - The company concluded Q4 with available liquidity of $2.8 billion, comprising $1.2 billion in cash and cash equivalents and $1.5 billion available under its revolver [26] - The company has reduced its full year 2025 CapEx outlook by an additional $100 million, now expecting to spend between $700 million and $800 million [9][20] Q&A Session Summary Question: Contract mix and renegotiation - The remaining 50% of contracts not on long-term agreements are primarily indexed to spot prices, with no significant recent renegotiations [61][62] Question: CapEx reduction and resource investments - The CapEx reduction primarily focused on conversion investments, with a shift towards high-quality, low-cost resources [63][64] Question: Market influence of Chengdu facility actions - The actions at Chengdu are not expected to significantly influence the broader market due to its relatively small capacity [67][68] Question: Tax guidance for 2025 - The wide range in tax guidance is driven by various scenarios influenced by lithium prices and tax evaluation allowances in certain jurisdictions [70][72] Question: Free cash flow breakeven in 2025 - Achieving breakeven free cash flow depends on executing the company's plans effectively, with pricing being a significant factor [75][76] Question: Lithium pricing and supply dynamics - Approximately 25% of the global lithium supply is underwater, with about half of that curtailed or shut down [84][86] Question: Energy Storage capacity under long-term contracts - About 50% of the Energy Storage capacity is under long-term contracts with floors [138][139] Question: Grid storage market outlook - The grid storage market is expected to continue growing, with a strong demand for lithium-based solutions [126][127]

Albemarle (ALB) Q4 2024 Earnings Call February 13, 2025 08:00 AM ET Company Participants Meredith Bandy - VP of IR & SustainabilityKent Masters - CEONeal Sheorey - Executive VP & CFOApurva Kilambi - Senior Equity Research AssociateDavid Begleiter - Managing DirectorJohn Roberts - Managing DirectorEric Norris - President of LithiumAleksey Yefremov - MD & Equity ResearchKevin McCarthy - PartnerBenjamin Kallo - Managing DirectorJosh Spector - Executive Director Conference Call Participants Patrick Cunningham - ...

Core Viewpoint - Albemarle Corporation reported a significant decline in earnings and revenues for the fourth quarter of 2024, indicating challenges in its Energy Storage segment and overall market conditions [1][2][5]. Financial Performance - Earnings per share for Q4 2024 were 29 cents, a recovery from a loss of $5.26 per share in the same quarter last year [1]. - Adjusted loss for the quarter was $1.09 per share, which was worse than the Zacks Consensus Estimate of a loss of 49 cents [1]. - Revenues fell approximately 48% year over year to $1,231.7 million, missing the Zacks Consensus Estimate of $1,311.5 million [2]. Segment Performance - The Energy Storage unit's sales dropped around 63% year over year to $616.8 million, missing the consensus estimate of $738 million due to reduced pricing and volumes [3]. - The Specialties segment recorded sales of $332.9 million, down about 2% year over year, also below the consensus estimate of $342 million [4]. - The Ketjen unit's revenues were $281.9 million, down roughly 17% year over year, falling short of the consensus estimate of $300 million [4]. Full-Year Results - For the full year 2024, the reported loss was $11.20 per share, compared to earnings of $13.36 per share the previous year [5]. - Net sales for FY24 declined around 44% year over year to $5,377.5 million [5]. Financial Position - At the end of 2024, cash and cash equivalents were approximately $1,192.2 million, up around 34% year over year [6]. - Long-term debt was approximately $3,118.1 million, down around 12% from the prior year [6]. - Cash from operations for FY24 was $702 million, down around 47% year over year [6]. Outlook - The company is implementing cost-cutting measures and optimizing its conversion network to enhance efficiencies and maintain competitive positioning [7]. - Expected capital expenditures for FY25 have been reduced by $100 million, now projected to be in the range of $700-$800 million [7]. - Depreciation and amortization expenses are anticipated to be between $630-$670 million for 2025 [8]. Stock Performance - Albemarle's shares have decreased by 31.7% over the past year, contrasting with a 0.5% rise in the Zacks Chemicals Diversified industry [9].

Company Performance - Albemarle reported a quarterly loss of $1.09 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.49, and down from earnings of $1.85 per share a year ago, representing an earnings surprise of -122.45% [1] - The company posted revenues of $1.23 billion for the quarter ended December 2024, missing the Zacks Consensus Estimate by 6.08%, and down from $2.36 billion in the same quarter last year [2] - Over the last four quarters, Albemarle has not surpassed consensus EPS estimates and has topped consensus revenue estimates only twice [2] Stock Performance - Albemarle shares have declined approximately 12.1% since the beginning of the year, contrasting with the S&P 500's gain of 3.2% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.34 on revenues of $1.28 billion, and for the current fiscal year, it is $1.44 on revenues of $5.32 billion [7] Industry Outlook - The Zacks Industry Rank indicates that the Chemical - Diversified sector is currently in the bottom 11% of over 250 Zacks industries, suggesting a challenging environment for stocks in this sector [8] - The performance of Albemarle's stock may be influenced by the overall outlook for the industry, as historical data shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]