Albemarle In A Lithium Daze
Great Ones, I’m so happy, ‘cause today I found my friends … they’re in the Great Stuff Picks portfolio, of all places.
“Lithium” lyrics and Great Stuff Picks? It can mean only one thing!
Right you are, Ken.
Lithium giant Albemarle (NYSE: ALB) stepped into the earnings confessional last night … and let’s just say, Albemarle isn’t saying any Hail Marys after this report.
The world’s leading lithium producer posted a profit of $7.50 per share on revenue of $2.1 billion.
Revenue was a bit lighter than expected, with Wall Street targeting sales of $2.2 billion, but earnings were impressive.
I mean, Albemarle’s Q3 earnings literally skyrocketed 600% to top the consensus estimate for a profit of $6.95 per share.
The only ding against Albemarle’s Q3 report — if you can call it a “ding” — was the company’s full-year guidance.
Back in August (man, that seems like forever ago), Albemarle lifted its full-year guidance to earnings of $20.75 per share on revenue of $7.3 billion. It was the second time the company boosted guidance this year, having lifted expectations to $14.65 per share on sales of $6 billion in May.
Apparently, Albemarle spoiled Wall Street with back-to-back guidance hikes because analysts were expecting another one in Q3.
The company said it expects Q4 earnings of $7.50 per share, flat with Q3 and backing the company’s boosted full-year guidance from August. Wall Steet, however, has its sights set on Q4 earnings of $8.40 per share … and, honestly, I can’t fathom why?
Personally, I’m very happy with any company that backs its current guidance in this market. It means things aren’t getting worse for said company … which is more than most can say right now.
What’s more, the EV market is growing kinda tight right now, with production delays, manufacturing issues and questionable demand due to worsening macroeconomic pressures. We’ve seen issues at Tesla, Nio, GM, Ford … pretty much any EV maker worth its salt is struggling somewhere.
So, why then, Wall Street, would you expect the main supplier of lithium for EV batteries to boost guidance in this market? It makes no sense.
Investors agreed and sent ALB stock skipping nearly 4% higher, while most of the rest of the market dealt with their respective Jerome Powell hangovers.
For Great Stuff Picks investors, ALB stock remains a buy. If you got in when I recommended ALB stock back in October 2021, you’re up about 28% right now — which is more than I can say for the rest of the market.
But we’re not done yet. We’re holding ALB stock for the long haul to ride the coming wave of EVs hitting the literal streets. This is going to be big, Great Ones. I can feel it.
The bottom line: Buy ALB stock if you don’t own it already, or add to your ALB position if you can.
The bottom bottom line: If you’ve already had your fill of lithium for the day — I know what I said — you need to check this out. Because it’s more than just lithium that the EV market needs…
According to Ian King, this material is more critical to EVs than lithium — it’s even more critical than computer chips.
He’s found a little-known company that stands as the biggest supplier of this material in the entire Western Hemisphere. There’s still time to get in early before the EV market skyrockets.
All Roku-d Up With No Place To Go
Stop me if you’ve heard this before…
I’m gonna bet “yes,” since you started that way.
Roku (Nasdaq: ROKU) beats earnings expectations on all fronts. It states the obvious. The stock sells off. Rinse, repeat.
Yup, called it. We’ve heard all this before.
Roku just posted a loss of $0.88 per share, much better than the $1.29 per-share loss that analysts were looking for. Revenue even ticked up from $680 million to $761 million, also topping estimates for $696 million.
Now, it should be said that while I’m not as hot on the streaming market any more — this is more than just a Paramount+ thing — there’s just not as much good, growthy growth post-pandemic as Wall Street expected — Roku is still the hottest thing in the streaming market.
As ROKU stock sank 18% today, I had to wonder: How many of those investors are panic-selling over Roku’s ad revenue warning … you know, the same ad revenue warning that every other Big Tech stock gave?
Now that I’ve heard before.
On Peloton’s Turning Away
Using words, you will find, are strange … mesmerized as Peloton’s (Nasdaq: PTON) in flames…
What else is new, Great Ones? A horrid, par-for-the-course, brand-appropriate report … with guidance that’s even worse! Impossible? Nope, that’s just Peloton…
Let’s rubberneck together, shall we?
Peloton posted revenue of $616.5 million, missing estimates for $650.1 million. Earnings weren’t much better, with Peloton’s loss per share reaching $1.20 — nearly double the $0.64 loss per share that analysts expected.
So … where’s that turnaround that Peloton keeps mentioning? You know, its attempt at a salve for repeatedly missing earnings and revenue expectations?
According to the captain on the S.S. Peloton, Barry McCarthy:
Yeah, straight into the iceberg. Peloton doesn’t have high hopes for the holiday shopping season, with its target revenue range of $700 million to $725 million missing analysts’ targets of $874 million by a long shot.
PTON fell 13% on the news before somehow crawling back out of its hole to breakeven.
No Clogs In This Croc
What can I say? Crocs rocks.
Crocs (Nasdaq: CROX) stock … mind you … no comment on the company’s foot-based disasterpieces.
Peloton disappointing investors with its earnings is no surprise, but who thought that Crocs of all companies would be the one to never give us up? Never let us down? Granted, have you ever seen someone run around and desert you while wearing Crocs? It’s a ghastly sight. Anyway…
The clog company just destroyed expectations across the board: Earnings per share hit $2.97 — miles above the $2.16 per share consensus. Revenue reached $985.1 million and also handily topped estimates for $899.8 million.
Better still — there’s more??? — Crocs expects full-year figures to fly in above analysts’ estimates, after which the stock ran up 10%.
Now this adds an interesting element to our lil’ Hanesbrands discussion from the other day: People are spending loads of cash on Crocs … but not so much on underwear. I worry about y’all sometimes.
How About Under … Armour?
Cup check! Pow!
No, not that kinda Under Armor … Under Armour (NYSE: UAA), the sportswear company. And yes, ‘round these parts, athletic clothing is called “sportswear” and not “athleisure” like some brands. *Cough Lululemon cough*
Under Armour’s fiscal second quarter report is in, and it’s a banger: Revenue’s up 2% to $1.57 billion, beating estimates of $1.55 billion by a hair. Earnings per share of $0.20 beat expectations for $0.16 per share … also by a hair.
OK, maybe it doesn’t look such a banger on the surface. But for a clothing company? In these times? UA investors are probably impressed the company’s just surviving.
Under Armour’s management is rather nonplussed about the whole situation:
We’re pleased to have delivered second-quarter results that were in line with our expectations.
While we anticipate the immediate macroeconomic backdrop to stay uncertain — we are taking a balanced approach to mitigate near-term pressures while continuing to focus on the long-term strength of our brand.
Yaaaaawn. That’s all great news, but … where’s the shade-throwing, à la Lisa Su? The meme-able drama? C’mon, I want some smack talk out of the earnings confessional!
This is very un-Wall-Street-like, but fine: Take your 12% rally and go, Under Armour.
What do you think, Great Ones? Are any of you invested in sportswear companies? Do you have strong opinions about Crocs? Own it, tell the truth…
Oh yeah … and what’s the deal with Albemarle? How many of you got in on that trade?
Share your side of the conversation in our inbox. And if you ever have a stock or investing idea you’d like to see Great Stuff cover, let us know at: GreatStuffToday@BanyanHill.com.
And if you have that burning yearning that only more Great Stuff can satisfy, you should check out our deets here:
Editor, Great Stuff