Scotiabank Has Pessimistic View of Albemarle FY2026 Earnings

Key Points

• Scotiabank cut Albemarle’s FY2026 EPS forecast to $11.54 from $14.76, below the $12.59 consensus estimate, while maintaining a “Sector Outperform” rating and $190 price target.
• Albemarle’s latest quarter exceeded expectations, with EPS of $3.75 versus $3.20 expected and revenue of $1.74 billion versus $1.61 billion; revenue increased 31.1% year over year.
• Wall Street remains broadly positive, with a consensus “Moderate Buy” rating and average price target of $190.26, despite shares opening at $129.39 and trading well below their 200-day moving average.

Albemarle Corporation (NYSE:ALB - Free Report) - Analysts at Scotiabank cut their FY2026 EPS estimates for shares of Albemarle in a research report issued on Monday, August 10th. Scotiabank analyst B. Isaacson now expects that the specialty chemicals company will post earnings of $11.54 per share for the year, down from their prior forecast of $14.76. Scotiabank currently has a "Sector Outperform" rating and a $190.00 target price on the stock. The consensus estimate for Albemarle's current full-year earnings is $12.59 per share. Scotiabank also issued estimates for Albemarle's FY2027 earnings at $14.15 EPS.

Albemarle (NYSE:ALB - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The specialty chemicals company reported $3.75 earnings per share for the quarter, topping analysts' consensus estimates of $3.20 by $0.55. Albemarle had a net margin of 3.09% and a return on equity of 10.96%. The firm had revenue of $1.74 billion during the quarter, compared to analysts' expectations of $1.61 billion. During the same quarter in the prior year, the business earned $0.11 EPS. Albemarle's quarterly revenue was up 31.1% compared to the same quarter last year.

ALB has been the topic of a number of other research reports. HSBC raised their price target on Albemarle from $200.00 to $220.00 and gave the stock a "buy" rating in a report on Monday, April 27th. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Albemarle in a research note on Tuesday, August 4th. Truist Financial decreased their price objective on Albemarle from $245.00 to $225.00 and set a "buy" rating for the company in a research report on Friday, August 7th. Robert W. Baird lowered their target price on Albemarle from $236.00 to $224.00 and set a "neutral" rating on the stock in a research note on Thursday, June 18th. Finally, UBS Group dropped their target price on Albemarle from $205.00 to $175.00 and set a "buy" rating on the stock in a report on Friday. Fifteen equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, Albemarle presently has a consensus rating of "Moderate Buy" and an average target price of $190.26.

Albemarle Price Performance

Shares of NYSE:ALB opened at $129.39 on Wednesday. The company has a 50-day simple moving average of $135.95 and a 200-day simple moving average of $163.43. Albemarle has a one year low of $71.25 and a one year high of $221.00. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.35 and a current ratio of 2.09. The stock has a market capitalization of $15.27 billion, a price-to-earnings ratio of 479.23 and a beta of 1.33.

Albemarle Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Friday, September 11th will be paid a dividend of $0.41 per share. This represents a $1.64 dividend on an annualized basis and a dividend yield of 1.3%. This is a positive change from Albemarle's previous quarterly dividend of $0.41. The ex-dividend date is Friday, September 11th. Albemarle's dividend payout ratio (DPR) is presently 607.41%.

Insider Transactions at Albemarle

In related news, CEO J Kent Masters sold 16,393 shares of the stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $183.72, for a total transaction of $3,011,721.96. Following the completion of the transaction, the chief executive officer directly owned 87,519 shares of the company's stock, valued at $16,078,990.68. This represents a 15.78% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. 0.42% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Albemarle

Several institutional investors and hedge funds have recently added to or reduced their stakes in ALB. Addison Advisors LLC purchased a new stake in shares of Albemarle in the second quarter valued at approximately $28,000. Elyxium Wealth LLC purchased a new position in Albemarle in the fourth quarter worth $34,000. Torren Management LLC purchased a new position in Albemarle in the fourth quarter worth $38,000. Sound Income Strategies LLC lifted its holdings in Albemarle by 190.1% in the first quarter. Sound Income Strategies LLC now owns 293 shares of the specialty chemicals company's stock valued at $52,000 after acquiring an additional 192 shares during the period. Finally, Root Financial Partners LLC lifted its holdings in Albemarle by 121.5% in the fourth quarter. Root Financial Partners LLC now owns 299 shares of the specialty chemicals company's stock valued at $42,000 after acquiring an additional 164 shares during the period. Institutional investors and hedge funds own 92.87% of the company's stock.

Albemarle Company Profile

Albemarle Corporation is a leading global specialty chemicals company primarily engaged in the production and distribution of lithium, bromine, and catalysts. Its lithium segment supplies key components used in rechargeable batteries for electric vehicles, portable electronics, and grid storage systems. The company's bromine specialty products serve a wide range of industries, including oil and gas drilling fluids, fire safety solutions, and water treatment. In its catalysts division, Albemarle provides products for petroleum refining, chemical processing and emissions control.

Founded in 1994 as a spin-off from Ethyl Corporation, Albemarle has grown through strategic acquisitions and capacity expansions to become one of the world's foremost chemical producers.

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