Lithium Stocks: Livent Rockets, Albemarle Rises After Earnings Beat

Lithium miner Livent (LTHM) bolted higher on Wednesday after edging past Q4 estimates and offering a sales outlook for 2023 that fell short of analyst forecasts. LTHM stock cleared an early entry point Wednesday after updating its expansion plans.


Albemarle (ALB) topped Q4 earnings estimates after the close, while reiterating the outlook introduced last month. ALB stock rose in after-hours action.

Albemarle Earnings

Results: Albemarle earnings per share surged 754% to $8.62, topping recently raised estimates by 36 cents. Revenue grew 193% to $2.62 billion, a hair below some estimates. It was the fourth straight quarter of accelerating growth for both.

Outlook: The company reiterated guidance first offered on Jan. 24 for 2023 sales of $11.3 billion to $12.9 billion, equating to growth of 55%-75%. Adjusted EPS should range from $26 to $33. That includes 30%-40% growth in lithium volumes in 2023 and assumes flat lithium pricing vs. Q4.

Livent Earnings

Results: Livent earnings per share surged 400% from a year ago to 40 cents, vs. estimates of 38 cents. Revenue rose 79% from a year ago to $219.4 million, well below estimates of $239.8 million.

Outlook: Livent offered 2023 revenue guidance of $1 billion to $1.1 billion, up 29% vs. 2022 at the midpoint. Analysts had penciled in $1.12 billion in 2023 sales. Adjusted EBITDA should range from $510 million to $580 million, up 49% at the midpoint.

The company said its capacity expansion is on track, with deliveries to begin in the second half of 2023 from a 10,000 metric ton expansion of lithium carbonate in Argentina. Production from a second 10,000 ton expansion in Argentina should start in early 2024.

Livent also has a 5,000-ton lithium hydroxide line in Bessemer City, N.C., that should begin to deliver commercial volumes later this year. A new facility in Zhejiang, China, should make initial deliveries in 2024.

Livent also provided an update on Nemaska Lithium, a fully integrated lithium hydroxide project in Quebec, Canada, of which Livent owns 50%. First customer commitments will be announced in the first…


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