Albemarle's Earnings Outlook
Albemarle (NYSE:ALB) releases its next round of earnings this Wednesday, February 17. Get the latest predictions in Benzinga's essential guide to the company's Q4 earnings report.
Net Income, Earnings, And Earnings Per Share
Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.
Earnings And Revenue
Analysts expect Albemarle earnings of $1.1 per share. Revenue will likely be around $850.93 million, according to the consensus estimate. In the same quarter last year, Albemarle reported earnings per share of $1.73 on sales of $992.56 million.
What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?
Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.
The Wall Street estimate would represent a 36.42% decline in the company's earnings. Sales would be down 14.27% on a year-over-year basis. Here is how the Albemarle's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q3 2020 | Q2 2020 | Q1 2020 | Q4 2020 |
|---|---|---|---|---|
| EPS Estimate | 0.78 | 0.73 | 0.83 | 1.74 |
| EPS Actual | 1.09 | 0.86 | 1 | 1.73 |
| Revenue Estimate | 739.60 M | 709.85 M | 762.33 M | 1.00 B |
| Revenue Actual | 746.87 M | 764.05 M | 738.85 M | 992.56 M |
Stock Performance
Shares of Albemarle were trading at $164.51 as of February 15. Over the last 52-week period, shares are up 89.11%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Albemarle is scheduled to hold the call at 09:00:00 ET and can be accessed here.
