SQM-Sociedad Quimica's Earnings Miss Estimates in Q4, Revenues Beat

Core Insights - Sociedad Quimica y Minera de Chile S.A. (SQM) reported earnings of 42 cents per share in Q4 2024, a decline from 71 cents per share in the same quarter last year, and below the Zacks Consensus Estimate of 52 cents [1][5] - The company's total revenues for the quarter were $1,073.8 million, down approximately 18% year over year, but exceeded the Zacks Consensus Estimate of$ 1,010 million [2] Segment Highlights - Revenues from the Lithium and Derivatives segment decreased around 33% year over year to $532 million, despite a 13% increase in lithium sales volumes due to lower prices [3] - The Specialty Plant Nutrients (SPN) segment saw revenues of$ 224.6 million, up 0.4% year over year, driven by higher sales volumes but partially offset by lower prices [3] - The Iodine and Derivatives segment generated revenues of $225.6 million, up 3% from the previous year, benefiting from higher prices [4] - Revenues from the Potassium business increased approximately 30% year over year to$ 65.9 million, attributed to higher sales volumes [4] - The Industrial Chemicals unit recorded sales of $17.2 million, down roughly 9% year over year, due to significantly lower sales volumes despite higher prices [4] Full-Year Results - For the full year 2024, SQM reported a loss of$ 1.42 per share, compared to earnings of $7.05 in the previous year, with sales falling around 39% year over year to approximately$ 4,528.8 million [5] Financial Position - At the end of 2024, the company's cash and cash equivalents stood at $1,377.9 million, an increase of 32% year over year, while long-term debt rose to$ 3,600.6 million, up roughly 12% from the prior year [6] Outlook - SQM anticipates a 15% increase in sales volumes in the Lithium and Derivatives unit for 2025 compared to 2024, with projected sales of around 10,000 metric tons of LCE from the Mt. Holland operation, although average realized prices are expected to decline year over year [7] - For the SPN unit, the company expects sales volume growth in 2025, in line with or slightly above the anticipated market growth of 4-5% [7] - The Iodine and Derivatives segment is expected to see market demand stabilize with a growth forecast of around 2% in 2025, while potassium sales volumes are projected to decrease by about 50% due to lower production in the Salar de Atacama [8] - Capital expenditure for 2025 is expected to be approximately $1.1 billion [8] Stock Performance - SQM's shares have declined by 14.7% over the past year, compared to a 12.8% decline in the Zacks Fertilizers industry [10]