Albemarle’s Q1 Adjusted EPS Beat Wall Street Estimate

Albemarle’s adjusted EPS for Q1 2019

Albemarle (ALB) announced its first-quarter earnings after the market closed on May 8. The company reported adjusted EPS of $1.36 in the first quarter, a decline of 5.4% on a year-over-year basis. In the first quarter of 2018, Albemarle reported adjusted EPS of $1.30. ALB’s Q1 2019 adjusted EPS beat the Wall Street estimate of $1.22.

Albemarle’s Q1 Adjusted EPS Beat Wall Street Estimate

Sign up for Bagels & Stox, our witty take on the top market and investment news, straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.

Albemarle’s adjusted EPS was adversely impacted by the divestiture of the polyolefin catalysts and components portion of the Performance Catalyst Solutions (or PCS) business to W.R. Grace & Co. (GRA) during 2018. Further, the increase in input cost resulted in higher cost of goods sold (or COGS). ALB reported Q1 2019 COGS at $548.57 million, representing 65.9% of the revenue, while COGS in Q1 2018 was 62.9%, which implies an increase of 300 basis points on a year-over-year basis.

Similarly ALB’s selling, general, and administrative expenses (or SG&A) also increased by 130 basis points on a year-over-year basis. Unfavorable foreign currency was another reason for the decline in ALB’s adjusted EPS.


Albemarle maintained its full-year outlook for fiscal 2019. ALB expects its fiscal 2019 adjusted EPS in the range of $6.10 to $6.50.

Stock price reaction

Since the earnings were announced after the markets closed, the next day, ALB stock remained flat and closed at $72.61. Peers FMC (FMC) and Sociedad Química y Minera de Chile (SQM) rose 0.95% and 0.2%, respectively.

Investors can indirectly hold Albemarle by investing in the Lithium ETF (LIT), which has invested 4.3% of its portfolio in Albemarle as of May 9.