Albemarle to Post Q2 Earnings: What's in the Cards for the Stock?

Core Viewpoint - Albemarle Corporation (ALB) is expected to report a decline in revenue for the second quarter of 2025, primarily due to weak lithium market prices and a projected overall revenue drop of 13.1% year-over-year [5][8]. Revenue Estimates - The Zacks Consensus Estimate for ALB's revenues for the upcoming quarter is $1,243.2 million, indicating a 13.1% decrease from the same quarter last year [5]. - The Energy Storage unit's revenue is expected to decline by 28.4% to $589 million [5][8]. - The Specialties unit is projected to see an 11.3% increase in net sales, estimated at $345 million [6][8]. - The Ketjen unit's net sales are expected to remain flat year-over-year at $260 million [6]. Performance Insights - ALB has missed the Zacks Consensus Estimate for earnings in three of the last four quarters, with an average negative earnings surprise of 136% [2]. - The company achieved a positive earnings surprise of 71% in the most recent quarter [2]. - ALB's shares have decreased by 19.2% over the past year, slightly better than the Zacks Chemicals Diversified industry's decline of 19.4% [3]. Cost and Productivity Actions - The company has implemented cost-saving and productivity initiatives that are expected to support margins despite challenges from declining lithium prices [9][10]. - ALB has made significant progress in its cost and operating structure review, achieving approximately 90% of its $350 million cost and productivity improvement target [10]. Market Conditions - The performance of ALB is likely to be impacted by soft lithium market prices, which have been affected by slowing demand for electric vehicles, inventory surplus, and increased supply [11]. - The uncertain macroeconomic environment and high interest rates have also contributed to weaker demand for lithium [11].