Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

Albemarle Tumbles as Earnings Guidance Disappoints

Stock Markets Feb 17, 2022 08:46AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio

By Dhirendra Tripathi – Albemarle stock (NYSE:ALB) lost more than a tenth of its value in premarket trading Thursday after the lithium producer’s annual earnings forecast failed to live up to its lofty valuation.

Albemarle’s full-year adjusted earnings forecast of $5.65-$6.65 per share fell short of expectations, despite implying a rise of 50% from last year's $4.04.  EPS in the fourth quarter were $1.01.

Investors “were hoping it’d be a blowout because the spot lithium prices are so high,” Bloomberg quoted KeyBanc Capital Markets senior analyst of U.S. chemicals Aleksey Yefremov as saying. He called the guidance “surprisingly low”, according to the agency.

Lithium is the most critical element in batteries that power electric vehicles. With the shift toward electric vehicles gaining momentum, lithium prices have skyrocketed in recent months, driving Albemarle stock up accordingly.

The 10% drop, if validated at the opening, would leave Albemarle still trading at 35 times its central earnings forecast for this year.

Net sales in the fourth quarter rose 2% to $894 million but the company posted a loss of $3.8 million, blaming cost overruns, labor- and pandemic-related issues at its Kemerton project in Australia. On an adjusted basis, profit per share was $1.01.

Current-year net sales are seen between $4.2 billion and $4.5 billion.


Albemarle Tumbles as Earnings Guidance Disappoints

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Shep De
Shep De Feb 17, 2022 12:48PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Pandemic related issues is supply chain, this speaks of demand high but lessening supply.This could become a huge issue for tech, really, anything with a battery of electric vehicles to computers to Alexas. Everything that walks and talks and computes.I'm wondering if this understandings arrived to institutions and analysts and economists as maybe some of supply problem will butterfly effect to all rare earth minerals and even metals in general, gold to silver to copper as a article today in oil stated costs so high that less exploration, and, hence, production Scary thinking/times
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email