Albemarle Earnings: Here’s Why Shares are Down Now

Albemarle Corp. (NYSE:ALB) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 2.16%.

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Albemarle Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 22.5% to $0.93 in the quarter versus EPS of $1.20 in the year-earlier quarter.

Revenue: Decreased 9.85% to $641.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Albemarle Corp. reported adjusted EPS income of $0.93 per share. By that measure, the company missed the mean analyst estimate of $1.01. It missed the average revenue estimate of $681.09 million.

Quoting Management: “First quarter results matched our expectation that 2013 would begin the year slowly,” stated Luke Kissam, CEO. “Catalysts was impacted by start-up costs from our two greenfield polyolefin catalysts expansions and an unfavorable mix in Refinery Catalysts. In Fine Chemistry, we saw robust demand for drilling fluids and an expected slow quarter in custom manufacturing. Polymer Solutions showed modest improvement from fourth quarter, but our current order book patterns suggest that demand for our portfolio of products in consumer electronics, construction and European auto markets will remain sluggish.”

Key Stats (on next page)…

Revenue decreased 6.69% from $687.6 million in the previous quarter. EPS decreased 20.51% from $1.17 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.34 to a profit $1.21. For the current year, the average estimate has moved down from a profit of $5.02 to a profit of $5.01 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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