Sociedad Quimica (SQM) to Post Q4 Earnings: What's in the Offing?
Sociedad Quimica y Minera de Chile S.A. SQM is slated to release fourth-quarter 2023 results after the closing bell on Feb 28.
The company missed the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It has a trailing four-quarter negative earnings surprise of around 11.8%, on average. It posted a negative earnings surprise of 15.2% in the last reported quarter.
The company’s fourth-quarter results are likely to have benefited from higher year over year lithium volumes. However, lower lithium and Iodine prices are expected to have hurt its performance. The pricing weakness in the Specialty Plant Nutrients segment is expected to have continued in the fourth quarter.
Shares of Sociedad Quimica have lost 51.1% in the past year compared with 33.7% decline of the industry.
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Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
The Zacks Consensus Estimate for fourth-quarter sales for Sociedad Quimica is currently pegged at $1,358 million, which suggests a decline of around 56.7% year over year.
Some Factors to Watch For
Sociedad Quimica is seeing favorable trends in the lithium market underpinned by strong electric vehicle sales. This is likely to have supported lithium sales volumes in the quarter to be reported. However, this is expected to have been offset by weaker lithium prices in the quarter. Lithium market prices have been under pressure due to the additional supply.
The Specialty Plant Nutrients segment is expected to have witnessed significant pricing pressure in the quarter to be reported. However, the benefits of the demand recovery are expected to reflect on the segment’s performance.
The company is expected to have witnessed lower prices in the Iodine and Derivatives unit in the December quarter. Moreover, the potassium business is likely to have benefited from strong volumes, offsetting the pricing weakness.
Sociedad Quimica y Minera S.A. Price and EPS Surprise
Sociedad Quimica y Minera S.A. price-eps-surprise | Sociedad Quimica y Minera S.A. Quote
Zacks Model
Our proven model does not conclusively predict an earnings beat for Sociedad Quimica this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for Sociedad Quimica is -7.13%. The Zacks Consensus Estimate for earnings for the fourth quarter is currently pegged at $1.22. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Sociedad Quimica currently carries a Zacks Rank #5 (Strong Sell).
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Lithium Americas (Argentina) Corp. LAAC, scheduled to release earnings on Mar 21, has an Earnings ESP of +47.56% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for LAAC’s earnings for the fourth quarter is currently pegged at a penny per share.
Wheaton Precious Metals Corp. WPM, slated to release earnings on Mar 14, has an Earnings ESP of +5.05% and carries a Zacks Rank #3 at present.
The consensus mark for WPM’s fourth-quarter earnings is currently pegged at 30 cents.
Franco-Nevada Corporation FNV, scheduled to release fourth-quarter earnings on Mar 5, has an Earnings ESP of +0.63%.
The Zacks Consensus Estimate for FNV's earnings for the fourth quarter is currently pegged at 80 cents. FNV currently carries a Zacks Rank #3.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Sociedad Quimica y Minera S.A. (SQM) : Free Stock Analysis Report
Franco-Nevada Corporation (FNV) : Free Stock Analysis Report
Wheaton Precious Metals Corp. (WPM) : Free Stock Analysis Report
Lithium Americas (Argentina) Corp. (LAAC) : Free Stock Analysis Report
