ICL Group’s Earnings and Revenues Outshine Estimates in Q2
ICL Group Ltd ICL reported impressive financial results for the second quarter of 2024, surpassing market expectations.
Despite a slight dip from the previous year, the company recorded profits of $115 million or 9 cents per share in Q2 2024. Adjusted earnings per share stood at 10 cents, surpassing the Zacks Consensus Estimate of 9 cents.
While sales experienced a 6% annual decrease to $1,752 million, they outperformed the Zacks Consensus Estimate of $1,733.2 million.
Visual Representation of Performance
ICL Group Ltd. price-consensus-eps-surprise-chart | ICL Group Ltd. Quote
Segment Breakdown
Sales in the Industrial Products segment saw a 5% increase year over year, reaching $315 million. EBITDA remained steady at $74 million, showcasing improvements from cost-saving initiatives and enhanced customer relationships.
Meanwhile, the Potash segment experienced a 27.5% decline in sales to $422 million with EBITDA dropping by 44% year over year.
Phosphate Solutions sales nudged up 1% year over year to $572 million, accompanied by a 13% rise in EBITDA to $146 million. Strong sales momentum in the Growing Solutions segment, with a 3% rise in revenue to $494 million and EBITDA almost doubling year over year.
Financial Overview
ICL ended the quarter with $287 million in cash and cash equivalents and long-term debt of $1,850 million, indicating a year-over-year decrease. Cash provided by operating activities totaled $316 million.
Guidance and Outlook
The company revised its full-year 2024 guidance, anticipating specialties-driven EBITDA in the range of $0.8 billion to $1 billion. Potash sales volumes are projected to remain unchanged at 4.6-4.9 million metric tons.
Stock Performance
Despite challenges, ICL’s shares exhibited resilience, declining 31.1% over the past year compared to a 23.9% industry decline.
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Analyzing Trends and Opportunites
Market watchers recommend considering other investments in the Basic Materials field such as Newmont Corporation (NEM), Franco-Nevada Corporation (FNV), and Agnico Eagle Mines Limited (AEM). Each boasting a favorable Zacks Rank ranging from #1 to #2.
Newmont anticipates substantial growth with a 75% surge in current-year earnings, consolidating its position with a 16% uptick in the past 60 days.
Franco-Nevada’s solid performance continues, with estimates pegging current-year earnings at $3.27 and an average positive earnings surprise of 10.5%.
Agnico Eagle Mines is another standout, with an estimated 63.7% earnings rise for the current fiscal year and a remarkable average earnings surprise of 15.7% over the past four quarters.