Global specialty chemicals company Albemarle (NYSE:ALB) provided preliminary Q4 (fourth quarter) estimates. The leading lithium producer expects to post adjusted earnings per share (EPS) in the range of $8.35 to $8.75, much higher than the Street’s projection of $7.68. Moreover, the company also offered a five-year outlook.
The strength in lithium pricing has given a stellar boost to its revenues, which could more than double compared to the prior year. Albemarle expects to deliver Q4 revenues in the range of $2.59 billion to $2.65 billion in Q4. This compares favorably to the prior-year quarter’s top line of $894.2 million.
Thanks to leverage from higher sales, Albemarle’s Q4 EPS is expected to grow more than eight times compared to the $1.01 reported in Q4 2021.
Albemarle provides critical ingredients like lithium that fuel the global energy transition. As a result, the company will likely benefit from expanding capacity and strategic contracting agreements. Also, operating efficiency and product innovation will support its financials.
ALB expects its net sales to increase at a CAGR of 19% to 21% through 2027. Moreover, adjusted EBITDA could reach $7.2 billion to $8.4 billion in 2027, up from $4.1 billion to $5.1 billion in 2023.
Is Albemarle Stock a Buy or Sell?
Thanks to the strong momentum in its business, Albemarle stock is up over 20% in 2023. Further, the stock was up about 2.5% in the pre-market session on January 24. With six Buy, four Hold, and two Sell recommendations, Albemarle has a Moderate Buy consensus rating on TipRanks.
Moreover, analysts’ price target of $278.42 implies 6.82% upside potential.
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