Why Albemarle Stock Fell 10% Out of the Gate Today

Shares of giant lithium miner Albemarle (NYSE: ALB) fell by as much as 10% in the first hour of trading on Thursday. The price decline was largely driven by the company's earnings report, which it released after the close Wednesday. Investors reacted poorly to the news despite having been forewarned about what to expect. As of 11:35 a.m. EST, Albemarle shares were down by 8.5%.

On Feb. 2, Albemarle provided a fourth-quarter 2020 update. It warned that its sales would be down between 11% and 12%, net income would be lower by 3% to 15%, and that adjusted EBITDA would be off by between 24% and 28%. Adjusted earnings per share were projected to be between $1.11 and $1.19, which was notably lower than the $1.73 per share the company earned in the same quarter of 2019. Although it noted that these numbers were, by and large, better than it had been predicting previously, the final tallies would nonetheless amount to notable year-over-year declines.

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Source Fool.com