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Albemarle Tops EPS Estimate, Misses On Revenue

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S pecialty chemical companyAlbemarle ( ALB ) was down sharply Thursday after reporting third-quarter earnings and announcing the sale of one of its units.

The Baton Rouge, La.-based company reported adjusted earnings of 90 cents a share, topping consensus estimates by a penny -- a 21% decline from a year earlier. The company missed on revenue, reporting $905.1 million vs. estimates of $938.5 million.

Albermarle guided for the year slightly lower, expecting $3.65 to $3.80. Analysts were expecting $3.81.

Albemarle also announced that it is selling its Tribotecc Metal Sulfides business to privately held Austrian chemical company Treibacher Industrie. The transaction is expected to close by the end of the year; terms were not disclosed.

CEO Luke Kissam says that the transaction allows Albemarle to focus on its core bromine, lithium, catalysts and surface treatment businesses.

Albermarle manufactures technologically advanced products used in a wide variety of applications, such as consumer electronics, metal processing, plastics, flame retardants, contemporary and alternative transportation vehicles, refining pharmaceuticals, agriculture and construction.

The company operates globally, serving customers in more than 100 countries.

Albermarle's earnings growth is cyclical but not as much as many other cyclical companies. Its five-year growth rate is just 1%, but its IBD Earnings Stability Rating is 8 on a 0 to 99 scale, where low numbers correspond to steady earnings growth.

Since 1996, Albemarle has had only four years of declining EPS growth: 2001, 2003, 2009 and 2013.

The company pays a regular quarterly dividend of 29 cents a share, which works out to an annualized yield of 2.1%.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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