Albemarle (ALB) Up 30.6% Since Last Earnings Report: Can It Continue?

Core Insights - Albemarle's shares have increased by approximately 30.6% since the last earnings report, outperforming the S&P 500 [1] Financial Performance - In Q3 2025, Albemarle reported adjusted losses of 19 cents per share, a significant improvement from losses of $1.55 per share a year ago, and better than the Zacks Consensus Estimate of a loss of 92 cents [2] - Revenues decreased by about 3.5% year over year to $1,307.8 million, surpassing the Zacks Consensus Estimate of $1,292 million, impacted by lower prices in the Energy Storage segment but offset by volume growth in Energy Storage and Ketjen [3] - Adjusted EBITDA for the quarter was $225.6 million, an increase from $211.5 million in the prior-year quarter, driven by lower input costs and cost reduction efforts [3] Segment Highlights - The Energy Storage unit's sales fell around 7.6% year over year to $708.8 million, exceeding the consensus estimate of $678 million, with an 8% increase in sales volumes due to higher spodumene sales and record production [4] - The Specialties segment recorded sales of $345 million, up approximately 0.8% year over year but below the consensus estimate of $349 million, with foreign exchange benefits offsetting lower volume [5] - The Ketjen unit achieved revenues of $254.1 million, up roughly 3.7% year over year, beating the consensus estimate of $248 million, although higher volumes were partially offset by lower prices [5] Financial Position - Albemarle ended the quarter with cash and cash equivalents of approximately $1,931.8 million, an increase from $1,664.5 million in the prior-year quarter, while long-term debt rose to around $3,181 million, up about 2% sequentially [6] - Cash from operations for the first nine months of 2025 was around $893.8 million, reflecting a 29% increase from the prior-year period [6] 2025 Outlook - The company has raised its full-year outlook for the enterprise and Energy Storage, expecting results to be near the higher end of the earlier $9/kg forecast range due to strong performance and higher lithium prices [7] - Capital expenditures for full-year 2025 are expected to be roughly $600 million, with depreciation and amortization expenses projected between $630-$670 million [8] Estimate Trends - Consensus estimates have trended downward over the past month, with a shift of -11.71% noted [9] - Albemarle currently holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return from the stock in the coming months [11] Industry Performance - Albemarle is part of the Zacks Chemical - Diversified industry, where Dow Inc. has gained 2.9% over the past month, reporting revenues of $9.97 billion for the quarter ended September 2025, reflecting a year-over-year change of -8.3% [12]