ICL Group's Earnings and Revenues Beat Estimates in Q2

ICL Group Ltd ICL recorded profits of $115 million or 9 cents per share in second-quarter 2024, down from $163 million or 13 cents in the year-ago quarter.

Barring one-time items, adjusted earnings per share were 10 cents. The bottom line beat the Zacks Consensus Estimate of 9 cents.

Sales fell around 6% yearly to $1,752 million in the quarter. The figure beat the Zacks Consensus Estimate of $1,733.2 million.

Segment Highlights

Sales in the Industrial Products segment rose 5% year over year to $315 million in the quarter. EBITDA remained flat year over year at $74 million. This marks the third consecutive quarter of sequential EBITDA improvement, driven by ongoing cost-saving efforts and strengthening customer relationships.

Sales in the Potash segment dropped 27.5% year over year to $422 million in the said quarter. EBITDA also fell 44% year over year to $118 million.

Sales in the Phosphate Solutions segment inched up 1% year over year, reaching $572 million in the quarter. EBITDA rose 13% year over year to $146 million. This marks the second consecutive quarter of sequential sales improvement, with EBITDA up 11% sequentially. Pricing remained stable during the quarter, though evolving supply dynamics are anticipated to impact future performance.

Sales in the Growing Solutions segment rose 3% year over year to $494 million in the quarter. EBITDA nearly doubled from $22 million registered in the same period last year to $45 million.

Financials

At the end of the quarter, ICL had cash and cash equivalents of $287 million, down around 23% year over year. Long-term debt was $1,850 million, down nearly 13% year over year.

Cash provided by operating activities was $316 million in the reported quarter.

Guidance

The company updated its full-year 2024 guidance, now projecting specialties-driven EBITDA of $0.8 billion to $1 billion, compared with the previous guidance of $0.7 billion to $0.9 billion. The expected potash sales volumes remain unchanged in the range of 4.6-4.9 million metric tons.

Price Performance

ICL's shares have lost 31.1% in the past year compared with a 23.9% decline in the industry.

Image Source: Zacks Investment Research

Zacks Rank & Key Picks

ICL currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Basic Materials space are Newmont Corporation NEM, Franco-Nevada Corporation FNV and Agnico Eagle Mines Limited AEM. Newmont and Franco-Nevada sport a Zacks Rank #1 (Strong Buy), and Agnico Eagle carries a Zacks Rank #2 (Buy).

The Zacks Consensus Estimate for Newmont's current-year earnings is pegged at $2.82, indicating a rise of 75% from year-ago levels. The consensus estimate for NEM's earnings has increased 16% in the past 60 days.The stock has gained nearly 28.8% in the past year.

The Zacks Consensus Estimate for FNV's current-year earnings is pegged at $3.27. The consensus estimate for FNV's earnings has increased by 3% in the past 60 days. FNV beat the consensus estimate in the last four quarters, with the average earnings surprise being 10.5%.

The Zacks Consensus Estimate for AEM's current fiscal year earnings is pegged at $3.65, indicating a year-over-year rise of 63.7%. AEM's earnings beat the Zacks Consensus Estimate in all of the last four quarters, the average earnings surprise being 15.7%. The company's shares have increased 70% in the past year.

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