Earnings Previews: Albemarle, APA, Barrick Gold, Cameco

Albemarle has begun weighing the possibility of reopening an idled lithium mine in North Carolina. The Kings Mountain mine is located on an 800-acre parcel on which Albemarle already operates a lithium refining plant and a battery materials operation. A decision is about two years away according to company officials.

Analysts are bullish on Albemarle. Of 22 brokerages covering the stock, 13 have a Buy or Strong Buy rating and seven have Hold ratings. At a recent price of around $191.40 a share, the implied gain based on a median price target of $256 is 33.8%. Based on the high price target of $307, the upside potential is 60.4%.

First-quarter revenue is forecast at $1.03 billion, which would be up about 15.4% sequentially and 24.2% higher year over year. Adjusted earnings per share (EPS) are forecast at $1.63, up 61.7% sequentially and 48.2% year over year. For the full 2022 fiscal year, analysts expect Albemarle to report EPS of $6.18, up 53%, on sales of $4.41 billion, up 32.6%.

Albemarle stock trades at 31.0 times expected 2022 EPS, 22.3 times estimated 2023 earnings of $8.57 and 19.1 times estimated 2024 earnings of $10.04 per share. The stock’s 52-week trading range is $150.00 to $291.48. Albemarle pays an annual dividend of $1.56 (yield of 0.83%). Total shareholder return over the past year was nearly 14.7%.


Independent oil and gas producer APA Corp. (NYSE: APA) is also scheduled to release quarterly results after markets close on Wednesday. Over the past 12 months, the company’s stock price has increased by 105%, with all the growth coming since late September, when crude oil prices began their steady climb higher.

Last month the company released an interim report estimating that daily international production would decline by about 4 million barrels a day in the first quarter and U.S. production would be about 211 million barrels a day, just a million barrels short of company guidance.

Analysts remain bullish on the stock, with 14 of 27 having a rating of Buy or Strong Buy and 12 more rating the stock at Hold. At a share price of around $40.60, the upside potential based on a median price target of $52 is about 28.1%. At the high price target of $75, the upside potential is about 84.7%.

For the company’s first quarter of fiscal 2022, analysts expect APA to report revenue of $2.44 billion, up 1.3% sequentially and 16.7% year over year. Adjusted EPS are expected to come in at $2.09, up 62.1% sequentially and up 129.7% year over year. For full fiscal 2022, EPS are forecast at $9.44, up 142.1%, on sales of $9.93 billion, up 25.2%.

The stock trades at 4.3 times expected 2022 EPS, 4.6 times estimated 2023 earnings of $8.91 and 4.9 times estimated 2024 earnings of $8.23 per share. APA’s 52-week range is $15.54 to $45.22. The company pays an annual dividend of $0.24 (yield of 1.23%). Total shareholder return for the past year was 105.2%.

Barrick Gold

Over the past 12 months, the price of gold has increased by about 3.8%. Barrick Gold Corp. (NYSE: GOLD) has seen its share price rise by about 8.2% over the same period. Barrick reports quarterly results before Wednesday’s opening bell.

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