SQM-Sociedad Quimica's Earnings and Revenues Miss Estimates in Q3

Core Viewpoint - Sociedad Quimica y Minera de Chile S.A. (SQM) reported a significant decline in profits and revenues for the third quarter of 2024 compared to the previous year, primarily due to lower average sales prices despite volume growth in several segments [1][2]. Financial Performance - SQM's profit for Q3 2024 was $131.4 million, or 46 cents per share, down from$ 479.4 million, or $1.68 per share, in the same quarter last year [1]. - Revenues for the quarter totaled$ 1,076.9 million, a decrease of approximately 41% year over year, missing the Zacks Consensus Estimate of $1,090.2 million [2]. Segment Highlights - The Lithium and Derivatives segment saw revenues drop around 61% year over year to$ 497.2 million, despite an 18% increase in sales volumes, due to a 67% reduction in average sales prices [3]. - The Specialty Plant Nutrients (SPN) segment generated revenues of $249.1 million, up about 12% year over year, driven by higher sales volumes but tempered by lower average sales prices [3]. - The Iodine and Derivatives segment posted revenues of$ 233.5 million, up around 10% year over year, benefiting from increased sales volumes [4]. - Revenues from the Potassium business fell approximately 9% year over year to $68.2 million, as higher sales volumes were offset by lower average sales prices [4]. - The Industrial Chemicals unit recorded sales of$ 18.6 million, down roughly 57% year over year, due to significantly lower sales volumes despite higher average sales prices [4]. Financial Position - At the end of the quarter, SQM had cash and cash equivalents of $1,565.4 million, an increase of about 52% sequentially [5]. - Long-term debt rose to$ 3,784.4 million, up roughly 28% from the prior quarter [5]. Outlook - SQM reaffirmed its lithium volume guidance, expecting sales between 190,000-195,000 thousand metric tons for the year [6]. - For the SPN unit, the company anticipates sales volumes to exceed projected market growth of 17% for 2024, with an expected growth of around 20% year-over-year [6]. - The company expects higher average realized sales prices in the Iodine and Derivatives segment for Q4 2024, driven by strong demand growth, particularly in X-ray contrast media [7]. - SQM projects potassium sales volumes to reach 620,000 metric tons in 2024, considering delays in shipments rescheduled for 2025 [7]. Stock Performance - SQM's shares have declined by 23.6% over the past year, compared to a 13.1% decline in the Zacks Fertilizers industry [8].