Key Takeaways

• SQM earnings per share in Q3 was 46 cents, far below the Zacks estimate of 64 cents

• TSQM shares have lost 23.6% the past year compared with the Fertilizers industry decline of 13.1%.

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Sociedad Quimica y Minera de Chile S.A. SQM logged a profit of $131.4 million or 46 cents per share in third-quarter 2024. The figure marks a decline from a profit of $479.4 million or $1.68 per share registered in the year-ago quarter. Earnings per share also fell short of the Zacks Consensus Estimate of 64 cents per share.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.SQM generated revenues of $1,076.9 million in the quarter, down around 41% year over year. The figure missed the Zacks Consensus Estimate of $1,090.2 million. While SQM saw volume growth in almost all of its business lines, it faced headwinds from weaker year-over-year pricing in the quarter.

 

Sociedad Quimica y Minera S.A. Price, Consensus and EPS SurpriseSociedad Quimica y Minera S.A. Price, Consensus and EPS Surprise

Sociedad Quimica y Minera S.A. price-consensus-eps-surprise-chart | Sociedad Quimica y Minera S.A. Quote

SQM’s Segment Highlights

Revenues from the Lithium and Derivatives segment fell around 61% year over year to $497.2 million in the reported quarter. Despite a roughly 18% increase in lithium sales volumes, the downside was caused by a sharp 67% reduction in average sales prices.The Specialty Plant Nutrients (SPN) segment generated revenues of $249.1 million, up around 12% year over year. This upside was driven by higher sales volumes, though it was partly tempered by lower average sales prices.The Iodine and Derivatives segment posted revenues of $233.5 million, up around 10% from the prior year’s levels, benefiting from higher sales volumes.Revenues from the Potassium business fell around 9% year over year to $68.2 million as higher sales volumes were more than offset by lower average sales prices.The Industrial Chemicals unit recorded sales of $18.6 million, down roughly 57% year over year. The downside was due to significantly lower sales volumes despite higher average sales prices.

SQM’s Financials

The company’s cash and cash equivalents were $1,565.4 million at the end of the quarter, up around 52% sequentially. Long-term debt was $3,784.4 million, up roughly 28% from the prior quarter.

SQM’s Outlook

SQM reaffirmed its lithium volume guidance, expecting between 190,000-195,000 thousand metric tons of product sold this year.For the SPN unit, the company expects its sales volumes to surpass its projected market growth of 17% for 2024. SQM sees its sales volumes grow around 20% year-over-year in 2024. The company also expects the average realized sales prices in the Iodine and Derivatives segment to be higher sequentially in the fourth quarter of 2024. It is seeing a strong demand growth in the iodine market mainly driven by X-ray contrast media and other industrial applications and expects the iodine market to grow roughly 7% year over year in 2024. SQM now expects its potassium sales volumes to reach 620,000 metric tons in 2024 factoring in the delay in the shipment of product rescheduled for 2025.

SQM Stock’s Price Performance

SQM’s shares have lost 23.6% over a year compared with the Zacks Fertilizers industry’s decline of 13.1%.

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SQM’s Zacks Rank & Other Basic Materials Releases

SQM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.DuPont de Nemours, Inc. DD logged adjusted earnings of $1.18 per share in the third quarter, topping the Zacks Consensus Estimate of $1.04. DD raised its full-year 2024 projections for operating EBITDA and adjusted earnings per share. The Chemours Company CC recorded adjusted earnings of 40 cents for the third quarter, topping the Zacks Consensus Estimate of 32 cents. CC expects consolidated net sales to decline in the mid to high-single digits sequentially in the fourth quarter. Consolidated adjusted EBITDA is forecast to be down in the high teens to low 20% range compared with third-quarter 2024 results. PPG Industries, Inc. PPG logged third-quarter adjusted earnings per share of $2.13, missing the Zacks Consensus Estimate of $2.15. PPG anticipates flat organic sales and adjusted earnings per share at the bottom end of the $8.15 to $8.30 range for full-year 2024.

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