Albemarle Corporation (NYSE:ALB) shares closed around 10% higher on Thursday following the company’s reported Q1 results, with adjusted EPS coming in at $2.38, above the consensus estimate of $1.64. Net sales were $1.12 billion, beating the consensus estimate of $1.03 billion.
The dramatic upside to the guidance was due to a substantial upside to Lithium and Bromine prices and an acceleration in Wodgina production.
Analysts at Oppenheimer said they are encouraged to see the company driving incremental Lithium volumes (20-30% year-over-year growth) and note guidance now implies year-over-year Lithium EBITDA growth of 200-225%. The company is migrating Lithium price floors higher while transitioning further to index pricing.
The company provided its full 2022-year outlook, expecting net sales of $5.2-5.6 billion (vs. $4.20-4.50 billion prior), significantly above the consensus estimate of $4.4 billion.