Albemarle Earnings Crush Estimates, but 2023 Outlook Cut Due to Falling Lithium Prices
(NYSE: ALB) stock gained 1.6% on Thursday, following the lithium-producing giant's release of strong first-quarter 2023 results on the prior afternoon. The stock's modest gain is largely attributable to first-quarter earnings speeding by Wall Street's expectation, along with management's positive comments in the earnings release and on the earnings call about the company's long-term growth prospects.
The stock's rise was held back, however, by management significantly lowering its 2023 guidance for both the top and bottom lines and other key metrics, citing falling lithium prices. Indeed, spot lithium carbonate prices in China have declined substantially this year but are still higher than they were a couple of years ago before the rapid run-up.
Data source: Albemarle. YOY = year over year.
Source Fool.com
Albemarle Corp Stock
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