Albemarle hikes full-year earnings, sales guidance well above estimates

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Albemarle (NYSE:ALB) +4.6% post-market on Monday after increasing guidance for FY 2022 adjusted earnings and net sales, primarily due to the completion of additional lithium contract renegotiations following its Q1 earnings release.

Albemarle (ALB) now forecasts full-year adjusted EPS of $12.30-$15.00, well above previous guidance of $9.25-$12.25 as well as $10.84 analyst consensus estimate, on net sales of $5.8B-$6.2B, better than its prior outlook of $5.2B-$5.6B and $5.45B consensus.

The company also raised full-year adjusted EBITDA guidance to $2.2B-$2.5B billion from its previous view of $1.7B-$2B, with adjusted EBITDA margins of 38%-40%, compared to prior guidance for 33%-36% margins.

Albemarle (ALB) now expects lithium adjusted EBITDA for the full year to grow by ~300% Y/Y, up from its previous outlook, and for FY 2022 volume rising 20%-30% Y/Y with new capacity coming online, unchanged from its prior outlook.

"We now expect full-year 2022 adjusted EBITDA to be up more than 160% from prior year based on favorable market dynamics for our Lithium and Bromine businesses," the company said.

Albemarle (ALB) enjoyed a "fantastic" Q1 and its "lithium growth story is just getting started," The Outsider writes in a bullish analysis published recently on Seeking Alpha.