Albemarle’s Revenue Beat Q1 Estimates

Albemarle’s Q1 2019 revenue

Albemarle’s (ALB) revenue continued its upward trend in the first quarter. ALB’s first-quarter revenues have been on the rise for the third consecutive year. It reported revenue of $832.06 million for Q1 2019, reflecting an increase of ~1.3% over Q1 2018. FMC’s (FMC) Q1 2019 revenue declined by 1.5%, while Sociedad Química y Minera de Chile (SQM) and W.R. Grace’s (GRA) Q1 2019 revenue grew by 0.6% and 8.8%, respectively. The company surpassed Wall Street analyst estimates of $817 million.

Albemarle’s Revenue Beat Q1 Estimates

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Albemarle’s revenue grew despite the divestiture of the polyolefin catalysts and components business to W.R. Grace (GRA). Higher volumes and better pricing in its bromine segment pushed ALB’s revenue up, while unfavorable foreign currency and divestiture had an adverse impact. Among ALB’s three reporting segments, on a year-over-year basis, the Lithium segment fell 2.1%, the Catalysts segment fell 3.5%, while the Bromine Specilaties segment reported 10.4% growth.

Outlook

ALB expects higher prices and higher volumes will drive the growth. As a result, Albemarle expects its revenue for fiscal 2019 to be in the range of $3.65 billion to $3.85 billion, implying growth of 8% to 14%.

Management comments

Luke Kissam, Albemarle’s chair, president, and CEO, said, “In the first quarter, Albemarle delivered adjusted diluted EPS of $1.23, in-line with our March press release. Lithium pricing was up year-over-year, while Catalysts and Bromine Specialties performed well, with both benefiting from increases in volume and price. We remain confident in our expectations for the full year, and committed to our long-term strategy that positions us for continued growth.”

Investors can hold Albemarle by investing in the First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN), which invests 6.3% of its portfolio in Albemarle as of May 9, 2019.