Albemarle's stock plummeted 5.20% during intraday trading on Thursday, following the release of its fourth-quarter financial results.
The lithium producer reported an adjusted loss of 53 cents per share, which was wider than the 41-cent loss anticipated by analysts. Concurrently, the company announced it would idle the remaining operating train at its Kemerton lithium hydroxide processing plant in Western Australia, indicating a strategic production pullback.
CEO Kent Masters stated that recent lithium price improvements do not fully offset the operational challenges facing Western lithium hard rock conversion projects. The stock had surged approximately 117% over the prior six months, suggesting investor expectations were elevated and the earnings miss triggered a significant sell-off, despite the company issuing strong full-year sales and EBITDA guidance contingent on supportive lithium prices.