Albemarie Corporation (ALB)

Nov 27, 2019 TeP Education

THIS IS NOT AN INVESTMENT ADVICE. EXERCISE DUE DILIGENCE YOUR CAPITAL IS AT RISK. THIS IS ONLY A COMPANY FAMILIARITY.

According to wikipedia:

Albemarle Corporation is a chemical company with corporate headquarters in Charlotte, North Carolina. It is a specialty chemical manufacturing enterprise. The company employs approximately 5,400 people[2] and has customers in approximately 100 countries.[1]

According to their website they are engaged to these products:

As a leader in the specialty chemicals industry, we think beyond business-as-usual to drive innovations that create lasting value for our customers and communities. We serve customers in the following markets:

Lithium
Albemarle is the industry leader in lithium and lithium derivatives, one of the highest growth markets in the specialty chemicals industry. Our unique natural resource position, derivatization capabilities and technology leadership gives us a sustainable competitive advantage.

Bromine Specialties
Albemarle’s Bromine Specialties business plays a leading role in providing performance solutions for fire safety, oilfield drilling, pharmaceutical manufacturing, high-tech cleaning, water treatment and food safety for a growing world.

Catalysts
We provide top-performance catalysts, technologies and related services to the refining and petrochemical industries. We deliver a robust portfolio of catalyst solutions that apply to the entire refinery process.

Fine Chemistry Services
Albemarle’s Fine Chemistry Services group has been an industry leader in contract pharmaceutical, agrichemical, lubricant and specialty chemicals manufacturing. Our world-class facilities and advanced R&D capabilities enable us to aid in every stage of product development.

COMPANY PERFORMANCE AS REPORTED TO THEIR WEBSITE

ALBEMARLE REPORTS THIRD QUARTER GROWTH

NOVEMBER 6, 2019

CHARLOTTE, N.C., Nov. 6, 2019 /PRNewswire/ — Albemarle Corporation (NYSE: ALB) today announced its results for the third quarter ended Sept. 30, 2019.

Albemarle Corp. Logo. (PRNewsFoto/Albemarle Corporation)

Third Quarter 2019 Highlights
(Based on year-over-year comparisons unless otherwise noted)

  • Net sales of $879.7 million increased 14%, excluding foreign exchange impact of 1%, largely driven by strong volume and favorable pricing
  • Earnings were $1.46 per diluted share, an increase of 22%
  • Adjusted EPS were $1.53 per diluted share, an increase of 17%
  • Adjusted EBITDA was $254.4 million, an increase of 8%

Notable Developments

  • Completed previously announced lithium joint venture with Mineral Resources Limited on Oct. 31, 2019; funded Wodgina mine project and other general corporate projects with $1 billion, borrowed from new $1.2 billion unsecured credit facility
  • Previously announced Company’s full year 2019 adjusted diluted EPS outlook is $6.00 – $6.20 from $6.25 – $6.65
  • Initiating cost management program targeting over $100 million in savings over a two-year period

“During the third quarter, Albemarle grew net sales by 14%, adjusted EBITDA by 12%, and adjusted earnings per share by 22% over the prior year, excluding currency impacts, due to solid growth across all businesses,” said Luke Kissam, Albemarle CEO. “We have recently made several strategic decisions to further position Albemarle for long-term success and remain confident in the long-term growth prospects of our business.”

TECHNICAL ANALYSIS

As to day chart, I am looking on area of consolidation and plotted a line just below the resistance level as part of trend following strategy, as you can see indeed there is 1 time that hit the line and pulled back immediately and go back to range and still unclear if it can attempt to test the uptrend momentum once again. Consequently, support line also plotted and there is approximately 3% risk of downside once it can go out at lower support channel. For now, I am interested how it will develop seems disclosure from company on their performance also inclined me to monitor this stock.

As for eToro research 74 is the average price targets from analysts and low estimate of 41 if there is a bad catalyst that will be present. However, Im still optimistic that it can push the price higher.

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