Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering ICL Group (ICL) , which belongs to the Zacks Fertilizers industry.When looking at the last two reports, this potash and fertilizer producer has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 35.42%, on average, in the last two quarters.For the most recent quarter, ICL Group was expected to post earnings of $0.06 ...

Core Insights - Israel Corporation Ltd. (ILCO) reported its fourth quarter and annual results for the period ending December 31, 2024, highlighting a net profit to shareholders of $31 million for Q4 2024, up from $28 million in Q4 2023, and an annual profit of $190 million, down from $273 million in 2023 [2][3] Financial Performance - ILCO's share in ICL profit for Q4 2024 was $30 million, compared to $28 million in Q4 2023, while the annual profit from ICL was $175 million, down from $282 million in 2023 [2] - Total financial liabilities as of December 31, 2024, were $733 million, with investments in liquid assets amounting to $882 million, of which $83 million are pledged deposits [2] - Net cash as of December 31, 2024, totaled $126 million, an increase from $84 million as of September 30, 2024 [3] Investment Activities - On January 21, 2025, ILCO entered into investment agreements for a total investment of approximately $116 million in Prodalim Investments Ltd., acquiring a 27.5% stake [4] - Prodalim focuses on creating natural solutions for various industries, including the development of de-alcoholization technologies for beverages [4] Dividend Distribution - The Board of Directors approved a dividend distribution of $15 million, with a record date of April 9, 2025, and a payment date of April 21, 2025 [5] Asset Overview - As of December 31, 2024, ILCO's total assets were valued at $2.977 billion, including a market value of $2.799 billion for its stake in ICL [6] Strategic Focus - ILCO aims to expand its portfolio through new investments, focusing on sectors such as food technology, agriculture technology, healthcare, and Industry 4.0 [8]

Financial Risks - The company is exposed to interest rate risks due to a portion of its liabilities bearing variable interest rates, which could materially affect its financial condition and results of operations [142]. - The company utilizes financial instruments, including interest rate swaps and cross-currency swaps, to hedge against cash flow risks associated with interest rate changes [143]. - The company relies on capital markets for financing, and volatility in these markets could affect its ability to obtain favorable financing terms [161]. - A crisis in financial markets could reduce available credit for business operations, impacting the company's financial condition [178]. - The company is subject to financial covenants related to its debt, and failure to comply could result in defaults, requiring alternative funding sources or asset sales [162]. Market and Economic Conditions - The company operates in emerging markets, facing risks such as high inflation rates, extreme fluctuations in exchange rates, and potential government interventions, which could adversely affect operations and profitability [164]. - Fertilizer sales are subject to volatility influenced by agricultural produce prices, with low prices or quantities potentially leading to significant fluctuations in operational results [166]. - Sales of Industrial Products and Phosphate Solutions are influenced by global economic conditions, particularly in Europe, where a strengthening euro against the US dollar can enhance competitors' advantages [170]. - The company's magnesium product sales are affected by economic conditions in the aluminum, steel, and casting sectors, which are critical for the vehicle industry [175]. - The ongoing US-China trade dispute may impose tariffs that adversely affect the company's sales and financial condition [174]. Operational Risks - Cybersecurity threats pose significant risks to the company's operations, with potential impacts including data breaches, operational disruptions, and legal liabilities [150]. - Compliance with evolving data privacy and cybersecurity laws may require substantial capital expenditures and could adversely impact business practices [157]. - The agricultural industry is significantly impacted by local weather conditions, which can lead to reduced crop quality and yield, ultimately affecting fertilizer sales [169]. - The company faces challenges in recruiting and retaining skilled personnel, which is critical for achieving business objectives and maintaining competitive advantage [158]. - The company faces risks related to product liability claims, which could harm its reputation and financial results [187]. Regulatory and Legal Environment - The company is subject to stringent regulatory requirements in the food industry, which may affect its operations and sales [173]. - The security situation in Israel has not materially impacted the company's business results, but future developments remain unpredictable [198]. - The company has implemented measures to ensure employee safety and minimize production disruptions amid the ongoing conflict in Israel [197]. - The company is exposed to risks from environmental regulations and potential antidumping duties that could affect its magnesium activities [176]. - Legal actions against public companies in Israel have increased, which may divert resources and affect decision-making within the company [207]. - The company is subject to both Israeli and US laws, which may lead to reporting and legal conflicts [206]. Shareholder and Corporate Governance - The controlling shareholder, Israel Corporation Ltd., may influence decisions that differ from the interests of other shareholders, potentially affecting share price and control [210]. - The existence of a Special State Share gives the State of Israel veto power over certain asset transfers, potentially impacting business opportunities [212]. - The company has approximately 170 million NIS 1 par value (approximately $47 million) shares authorized but unissued, which may lead to future dilution for shareholders [217]. - The company's dividend distribution policy allows for a payout of up to 50% of annual adjusted net profit, but payments are not guaranteed and can be modified at the Board's discretion [220]. - The market price of ICL's ordinary shares is subject to fluctuations, which may result in substantial losses for investors [214]. - ICL's sales may be affected by economic boycotts or sanctions due to its Israeli operations [202]. Performance Fluctuations - The company has experienced quarterly fluctuations in its results due to the seasonal nature of its products, with stronger sales typically in the second and third quarters [224]. - Approximately 15% of ICL employees in Israel were drafted for military reserve duty due to the ongoing war, which may disrupt operations [203].

Core Insights - ICL Group Ltd reported a profit of $70 million or 6 cents per share in Q4 2024, an increase from $67 million or 5 cents in the same quarter last year, with adjusted earnings per share at 8 cents, down from 10 cents a year ago, beating the Zacks Consensus Estimate of 6 cents [1][2] Financial Performance - Sales for Q4 2024 fell approximately 5% year over year to $1,601 million, missing the Zacks Consensus Estimate of $1,704.5 million, with lower sales across all business segments [2] - For the full year 2024, earnings were reported at 32 cents per share, down from 50 cents a year ago, with total sales declining around 9% year over year to approximately $6,841 million [6] Segment Performance - Industrial Products segment sales decreased roughly 6% year over year to $280 million, while EBITDA increased about 25% year over year to $70 million [3] - Potash segment sales dropped around 11% year over year to $422 million, with EBITDA falling 23% year over year to $130 million due to lower potash prices [4] - Phosphate Solutions segment sales fell roughly 2% year over year to $507 million, with EBITDA declining 5% year over year to $132 million [4] - Growing Solutions segment sales declined around 8% year over year to $439 million, but EBITDA surged approximately 240% from the same quarter last year to $51 million [5] Financial Position - At the end of 2024, ICL had cash and cash equivalents of $327 million, down around 22% year over year, while long-term debt increased nearly 4% year over year to $1,909 million [7] - Net cash provided by operating activities was $452 million in Q4 2024 and $1,468 million for the full year [7] Future Guidance - ICL expects EBITDA for specialties-driven segments to be between $0.95 billion and $1.15 billion for 2025, with potash sales volumes projected between 4.5 million metric tons and 4.7 million metric tons [8] Stock Performance - ICL's shares have increased by 13.3% over the past year, contrasting with a 5.5% decline in the Zacks Fertilizers industry [9]

Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Has ICL Group (ICL) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Basic Materials sector should help us answer this question.ICL Group is a member of our Basic Materials group, which includes 232 different companies and currently sits at #15 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strengt ...

ICL Group Ltd (NYSE:ICL) Q4 2024 Earnings Call Transcript February 26, 2025 8:30 AM ET Company Participants Peggy Tharp - Vice President, Global Investor Relations Raviv Zoller - President and Chief Executive Officer Aviram Lahav - Chief Financial Officer Elad Aharonson - Incoming President and Chief Executive Officer Conference Call Participants Ben Theurer - Barclays Kevin Estok - Jefferies Joel Jackson - BMO Capital Markets Laurence Alexander - Jefferies Operator Good morning, ladies and gentlemen, and w ...

2024 Fourth Quarter Financial Results Raviv Zoller | President and CEO February 26, 2025 Important legal notes This report for the fourth quarter of 2024 should be read in conjunction with the Annual Report of 2023 and our current reports on Form 6-K for the results for the quarters ended December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, filed on February 26, 2025, November 11, 2024, August 14, 2024, and May 9, 2024, respectively, including the description of events occurring subsequ ...

Core Viewpoint - ICL Group has shown strong stock performance, with a 10.6% increase over the past month and a 30.6% rise since the beginning of the year, outperforming both the Zacks Basic Materials sector and the Zacks Fertilizers industry [1][2]. Financial Performance - ICL Group has consistently exceeded earnings expectations, reporting an EPS of $0.08 against a consensus estimate of $0.06 in its last earnings report [2]. - For the current fiscal year, ICL Group is projected to achieve earnings of $0.42 per share on revenues of $6.94 billion, with a year-over-year earnings growth of 14.41% [3]. - The following fiscal year is expected to see earnings of $0.51 per share on revenues of $7.56 billion, reflecting an 8.86% year-over-year increase [3]. Valuation Metrics - The stock currently trades at a valuation of 15.4 times the current fiscal year EPS estimates, which is above the peer industry average of 12.9 times [7]. - On a trailing cash flow basis, ICL Group trades at 6.8 times, slightly above the peer group's average of 6.5 times [7]. - The stock has a PEG ratio of 7.35, indicating it is not among the top value stocks [7]. Zacks Rank and Style Scores - ICL Group holds a Zacks Rank of 2 (Buy), supported by rising earnings estimates [8]. - The company has a Value Score of A, a Growth Score of C, and a Momentum Score of D, resulting in a combined VGM Score of B [6][8].

Core Viewpoint - ICL Group Ltd's shares have increased by 31% over the past three months, significantly outperforming the Zacks Fertilizers industry, which rose by only 3%. This growth is attributed to strong third-quarter 2024 results and an upward revision of full-year guidance [1] Financial Performance - ICL's EBITDA for its specialties-driven businesses showed significant year-over-year improvement in Q3 2024, marking the fourth consecutive quarter of sequential EBITDA growth. The company raised its full-year 2024 EBITDA guidance to between $0.95 billion and $1.05 billion, up from the previous range of $0.8 billion to $1 billion [6] - The company ended Q3 2024 with cash and cash equivalents of $393 million, a 28% increase year-over-year, and available liquidity of $1,749 million. Operating cash flow for the quarter was $408 million [12] Strategic Initiatives - ICL is focused on expanding its specialties businesses through strategic acquisitions, cost-saving measures, and innovative solutions. Recent acquisitions include Nitro 1000 and Custom Ag Formulators, which enhance its market position in Brazil and globally [5][7] - A joint venture with Shenzhen Dynanonic Co., Ltd. aims to produce lithium iron phosphate (LFP) cathode active material in Europe, with an initial investment of approximately €285 million (around $297 million) [8] - The company is also expanding its battery materials business with a new plant in Sallent, Spain, to support sustainable supply chains [9] Product Development - ICL's investment in Plantible Foods during its Series B capital round reflects its commitment to sustainable food solutions. The development of innovative ingredients like Rovitaris Binding Solution aligns with industry trends [10] - The introduction of VeriQuel R100, a phosphorus-based product developed with over $2 million in R&D, offers a greener alternative to traditional flame retardants, catering to the growing demand for environmentally friendly building materials [11] Market Position and Valuation - ICL's shares have outperformed both the industry and the S&P 500, with a 38% increase over the past six months compared to the industry's 2.9% rise and the S&P 500's 7.6% increase [17] - The stock is currently trading at a forward P/E of 14.22X, which is a 1.6% premium over the industry average of 13.99X [15] Dividend and Earnings Outlook - ICL offers a dividend yield of 2.1%, above the S&P 500 average, with a payout ratio of 37%, indicating sustainability. The five-year annualized dividend growth rate is approximately 24.8% [13] - Analysts have revised earnings estimates for ICL upward over the past 60 days, reflecting positive sentiment [14]

Group 1 - ICL Group Ltd.'s unit, ICL Industrial Products, has partnered with NobleAI to develop innovative chemical compounds for flame retardants using AI solutions [1][2] - The collaboration aims to speed up the discovery of high-performance compounds, making the process more timely and cost-efficient [2][3] - ICL is also working with Microsoft Azure Quantum Elements to enhance the development of safer and more sustainable flame retardants, which will reduce resource wastage [3] Group 2 - ICL's stock has increased by 29% over the past year, outperforming the industry average rise of 5.1% [3] - ICL currently holds a Zacks Rank of 2 (Buy), indicating positive market sentiment [4] - Other top-ranked stocks in the Basic Materials sector include Ingevity Corporation, Carpenter Technology Corporation, and Methanex Corp., with varying degrees of performance and earnings surprises [4][5][6][7]