Sociedad Quimica y Minera de Chile S.A.
SQM
will release
fourth-quarter 2021
results after the closing bell on Mar 2.
The company missed the Zacks Consensus Estimate for earnings in two of the last four quarters. It beat once and posted in-line results on the other occasion. It has a trailing four-quarter negative earnings surprise of around 4.2%, on average. It posted a negative earnings surprise of 27.5% in the last reported quarter. The company’s fourth-quarter results are likely to reflect higher demand and prices.
Shares of Sociedad Quimica have gained 18% in the past year compared with 34.1% rise of the
industry
.
Image Source: Zacks Investment Research
Let’s see how things have shaped up for this announcement.
Zacks Model
Our proven model predicts an earnings beat for Sociedad Quimica this time around. The combination of a positive
Earnings ESP
and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat.
Earnings ESP:
Earnings ESP for Sociedad Quimica is +15.68%. The Zacks Consensus Estimate for the fourth quarter is currently pegged at 97 cents. 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 #2.
What Do the Estimates Say?
The Zacks Consensus Estimate for fourth-quarter sales for Sociedad Quimica is currently pegged at $1,011 million, which suggests a rise of around 96.8% year over year.
Some Factors to Watch For
The company is likely to have gained from higher realized prices and strong demand in the quarter to be reported. Higher sales volumes in lithium, specialty plant nutrition, potassium chloride, iodine and potassium businesses are expected to have aided its top line and margins in the quarter.
The expansion of lithium operations is expected to have supported the company’s lithium sales volumes. Strong demand and limited supply are also likely to have boosted lithium prices in the December quarter. Iodine volumes are expected to have been driven by growing demand following the post-pandemic recovery.
Global potassium prices are also expected to have been driven by the shortage of potassium-based fertilizers. This is likely to have boosted prices in the company’s potassium business lines in the fourth quarter.
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows these too have the right combination of elements to post an earnings beat this quarter:
Companhia Siderurgica Nacional
SID
, scheduled to release earnings on Mar 9, has an Earnings ESP of +3.57% and carries a Zacks Rank #3. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
The consensus estimate for Companhia Siderurgica’s fourth-quarter earnings has been stable over the past 30 days. The Zacks Consensus Estimate for SID’s earnings for the quarter stands at 28 cents.
Seabridge Gold Inc.
SA
, expected to release earnings on Mar 23, has an Earnings ESP of +14.29% and carries a Zacks Rank #3.
The consensus estimate for Seabridge Gold’s fourth-quarter earnings has been stable in the past 30 days. The Zacks Consensus Estimate for SA’s fourth-quarter earnings is pegged at a loss of 4 cents.
Stay on top of upcoming earnings announcements with the
Zacks Earnings Calendar
.
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