ICL Group LtdICL delivered earnings of $115 million or 9 cents per share in the second quarter of 2024. Although this figure was down from $163 million or 13 cents in the same period a year earlier, the result surpassed expectations.
Adjusting for one-time items, the company reported adjusted earnings per share of 10 cents, beating the Zacks Consensus Estimate of 9 cents.
Despite a 6% decline in sales to $1,752 million year-over-year, the revenue figure exceeded the Zacks Consensus Estimate of $1,733.2 million.
Segment Highlights
The Industrial Products segment witnessed a 5% year-over-year increase in sales, reaching $315 million. EBITDA remained steady at $74 million, showcasing ongoing operational efficiencies and enhanced customer relationships.
Conversely, the Potash segment experienced a 27.5% decline in sales to $422 million, with EBITDA dropping by 44% year over year to $118 million.
In the Phosphate Solutions segment, sales inched up by 1% year over year to $572 million, with EBITDA showing a 13% increase to $146 million. Notably, stable pricing and evolving supply dynamics are anticipated to affect future performance.
Sales in the Growing Solutions segment rose by 3% year over year to $494 million, with EBITDA nearly doubling from $22 million to $45 million.
Financials
By the quarter’s end, ICL possessed cash and equivalents totaling $287 million, down approximately 23% from the previous year. Long-term debt stood at $1,850 million, reflecting a decrease of almost 13% year over year.
The reported quarter generated $316 million in cash from operating activities.
Guidance
ICL revised its full-year 2024 guidance to anticipate specialties-driven EBITDA in the range of $0.8 billion to $1 billion, compared to the prior guidance of $0.7 billion to $0.9 billion. Potash sales volumes are expected to remain within the range of 4.6-4.9 million metric tons.
Price Performance
ICL’s shares exhibited a 31.1% decline over the past year, outpacing the 23.9% industry decline.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
ICL currently holds a Zacks Rank #3 (Hold).
Noteworthy stocks in the Basic Materials sector include Newmont Corporation, Franco-Nevada Corporation, and Agnico Eagle Mines Limited. Newmont and Franco-Nevada carry a Zacks Rank #1 (Strong Buy), while Agnico Eagle is assigned a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Newmont’s current-year earnings suggests a 75% increase from the previous year. Similarly, Franco-Nevada’s consensus estimate reflects a 3% rise in earnings over the past 60 days, with a history of consistent earnings surprises. Agnico Eagle’s current fiscal year earnings estimate indicates a 63.7% year-over-year increase, with a track record of beating consensus estimates.