- Albemarle (NYSE:ALB) -2.2% post-market after reporting better than forecast Q4 adjusted earnings but guiding FY 2021 below estimates on expectations for lower lithium prices.
- Q4 adjusted EBITDA fell 25% Y/Y to $221M but came in above $214M consensus.
- Q4 lithium net sales fell 13% Y/Y to $359M, mostly due to lower contract pricing reflecting 2020 battery-grade price adjustments that were agreed to in late 2019.
- "Longer-term, we expect lithium demand to grow in line with greater EV adoption. We are accelerating our lithium growth projects to capitalize on this trend and generate strong investment returns," Albemarle says.
- The company foresees higher volumes in 2021 due to North American restarts and efficiency improvements, but it expects pricing will be down slightly, primarily due to anticipated lower average realized pricing for carbonate and technical grade products.
- For FY 2021, Albemarle forecasts adjusted EPS of $3.25-$3.65, below $4.09 analyst consensus estimate, on revenues of $3.2B-$3.3B, in line with $3.21B consensus.