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Albemarle In A Lithium Daze
Nice Ones, I’m so completely satisfied, ‘trigger as we speak I discovered my mates … they’re within the Nice Stuff Picks portfolio, of all locations.
“Lithium” lyrics and Nice Stuff Picks? It may imply just one factor!
Proper you’re, Ken.
Lithium big Albemarle (NYSE: ALB) stepped into the earnings confessional final night time … and let’s simply say, Albemarle isn’t saying any Hail Marys after this report.
The world’s main lithium producer posted a revenue of $7.50 per share on income of $2.1 billion.
Income was a bit lighter than anticipated, with Wall Road concentrating on gross sales of $2.2 billion, however earnings have been spectacular.
I imply, Albemarle’s Q3 earnings actually skyrocketed 600% to high the consensus estimate for a revenue of $6.95 per share.
The one ding towards Albemarle’s Q3 report — for those who can name it a “ding” — was the corporate’s full-year steerage.
Again in August (man, that looks as if endlessly in the past), Albemarle lifted its full-year steerage to earnings of $20.75 per share on income of $7.3 billion. It was the second time the corporate boosted steerage this yr, having lifted expectations to $14.65 per share on gross sales of $6 billion in Could.
Apparently, Albemarle spoiled Wall Road with back-to-back steerage hikes as a result of analysts have been anticipating one other one in Q3.
The corporate stated it expects This fall earnings of $7.50 per share, flat with Q3 and backing the corporate’s boosted full-year steerage from August. Wall Steet, nonetheless, has its sights set on This fall earnings of $8.40 per share … and, actually, I can’t fathom why?
Personally, I’m very pleased with any firm that backs its present steerage on this market. It means issues aren’t getting worse for stated firm … which is greater than most can say proper now.
What’s extra, the EV market is rising kinda tight proper now, with manufacturing delays, manufacturing points and questionable demand as a consequence of worsening macroeconomic pressures. We’ve seen points at Tesla, Nio, GM, Ford … just about any EV maker value its salt is struggling someplace.
So, why then, Wall Road, would you anticipate the principle provider of lithium for EV batteries to spice up steerage on this market? It is unnecessary.
Buyers agreed and despatched ALB inventory skipping practically 4% larger, whereas many of the remainder of the market handled their respective Jerome Powell hangovers.
For Nice Stuff Picks buyers, ALB inventory stays a purchase. When you received in once I beneficial ALB inventory again in October 2021, you’re up about 28% proper now — which is greater than I can say for the remainder of the market.
Congratulations!
However we’re not performed but. We’re holding ALB inventory for the lengthy haul to journey the approaching wave of EVs hitting the literal streets. That is going to be huge, Nice Ones. I can really feel it.
The underside line: Purchase ALB inventory for those who don’t personal it already, or add to your ALB place for those who can.
The underside backside line: When you’ve already had your fill of lithium for the day — I do know what I stated — you could examine this out. As a result of it’s extra than simply lithium that the EV market wants…
In response to Ian King, this materials is extra important to EVs than lithium — it’s much more important than laptop chips.
He’s discovered a little-known firm that stands as the most important provider of this materials in the whole Western Hemisphere. There’s nonetheless time to get in early earlier than the EV market skyrockets.
Click on right here for the total story.
All Roku-d Up With No Place To Go
Cease me for those who’ve heard this earlier than…
I’m gonna guess “sure,” because you began that means.
Roku (Nasdaq: ROKU) beats earnings expectations on all fronts. It states the apparent. The inventory sells off. Rinse, repeat.
Yup, referred to as it. We’ve heard all this earlier than.
Roku simply posted a lack of $0.88 per share, significantly better than the $1.29 per-share loss that analysts have been searching for. Income even ticked up from $680 million to $761 million, additionally topping estimates for $696 million.
Now, it must be stated that whereas I’m not as sizzling on the streaming market any extra — that is greater than only a Paramount+ factor — there’s simply not as a lot good, growthy development post-pandemic as Wall Road anticipated — Roku is nonetheless the most well liked factor within the streaming market.
As ROKU inventory sank 18% as we speak, I needed to surprise: What number of of these buyers are panic-selling over Roku’s advert income warning … you already know, the identical advert income warning that each different Huge Tech inventory gave?
Now that I’ve heard earlier than.
On Peloton’s Turning Away
Utilizing phrases, you will see, are unusual … mesmerized as Peloton’s (Nasdaq: PTON) in flames…
What else is new, Nice Ones? A horrid, par-for-the-course, brand-appropriate report … with steerage that’s even worse! Inconceivable? Nope, that’s simply Peloton…
Let’s rubberneck collectively, we could?
Peloton posted income of $616.5 million, lacking estimates for $650.1 million. Earnings weren’t significantly better, with Peloton’s loss per share reaching $1.20 — practically double the $0.64 loss per share that analysts anticipated.
So … the place’s that turnaround that Peloton retains mentioning? You recognize, its try at a salve for repeatedly lacking earnings and income expectations?
In response to the captain on the S.S. Peloton, Barry McCarthy:
The ship is popping.
Yeah, straight into the iceberg. Peloton doesn’t have excessive hopes for the vacation buying season, with its goal income vary of $700 million to $725 million lacking analysts’ targets of $874 million by an extended shot.
PTON fell 13% on the information earlier than by some means crawling again out of its gap to breakeven.
No Clogs In This Croc
What can I say? Crocs rocks.
Crocs (Nasdaq: CROX) inventory … thoughts you … no touch upon the corporate’s foot-based disasterpieces.
Peloton disappointing buyers with its earnings isn’t any shock, however who thought that Crocs of all corporations could be the one to by no means give us up? By no means allow us to down? Granted, have you ever ever seen somebody run round and desert you whereas sporting Crocs? It’s a ghastly sight. Anyway…
The clog firm simply destroyed expectations throughout the board: Earnings per share hit $2.97 — miles above the $2.16 per share consensus. Income reached $985.1 million and likewise handily topped estimates for $899.8 million.
Higher nonetheless — there’s extra??? — Crocs expects full-year figures to fly in above analysts’ estimates, after which the inventory ran up 10%.
Now this provides an fascinating aspect to our lil’ Hanesbrands dialogue from the opposite day: Persons are spending a great deal of money on Crocs … however not a lot on underwear. I fear about y’all generally.
How About Underneath … Armour?
Cup examine! Pow!
No, not that kinda Underneath Armor … Underneath Armour (NYSE: UAA), the sportswear firm. And sure, ‘spherical these elements, athletic clothes is known as “sportswear” and never “athleisure” like some manufacturers. *Cough Lululemon cough*
Underneath Armour’s fiscal second quarter report is in, and it’s a banger: Income’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 … additionally by a hair.
OK, perhaps it doesn’t look such a banger on the floor. However for a clothes firm? In these occasions? UA buyers are in all probability impressed the corporate’s simply surviving.
Underneath Armour’s administration is somewhat nonplussed about the entire scenario:
We’re happy to have delivered second-quarter outcomes that have been in step with our expectations.
Whereas we anticipate the quick macroeconomic backdrop to remain unsure — we’re taking a balanced strategy to mitigate near-term pressures whereas persevering with to give attention to the long-term energy of our model.
Yaaaaawn. That’s all nice information, however … the place’s the shade-throwing, à la Lisa Su? The meme-able drama? C’mon, I need some smack speak out of the earnings confessional!
That is very un-Wall-Road-like, however fantastic: Take your 12% rally and go, Underneath Armour.
What do you assume, Nice Ones? Are any of you invested in sportswear corporations? Do you’ve got sturdy opinions about Crocs? Personal it, inform the reality…
Oh yeah … and what’s the cope with Albemarle? What number of of you bought in on that commerce?
Share your aspect of the dialog in our inbox. And for those who ever have a inventory or investing concept you’d wish to see Nice Stuff cowl, tell us at: GreatStuffToday@BanyanHill.com.
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Regards,
Joseph Hargett
Editor, Nice Stuff
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