ICL Group LtdICL reported profits of $115 million or 9 cents per share in the second quarter of 2024, slightly down from $163 million or 13 cents in the corresponding period last year.
Excluding one-time items, adjusted earnings per share stood at 10 cents, surpassing the Zacks Consensus Estimate of 9 cents.
Total sales dipped around 6% year-over-year to $1,752 million during the quarter, exceeding the Zacks Consensus Estimate of $1,733.2 million.
ICL Group Ltd. Price, Consensus and EPS Surprise
ICL Group Ltd. price-consensus-eps-surprise-chart | ICL Group Ltd. Quote
Weathering the Storm: Segment Performance
The Industrial Products segment saw a 5% increase in sales to $315 million. EBITDA remained stable at $74 million, thanks to cost-saving initiatives and strengthened client partnerships.
Conversely, the Potash segment experienced a 27.5% drop in sales to $422 million, with EBITDA also declining by 44% to $118 million.
In the Phosphate Solutions segment, sales inched up 1% year-over-year to $572 million, while EBITDA showed a robust 13% growth to $146 million, driven by improved sales performance.
The Growing Solutions segment witnessed a 3% sales uptick to $494 million, with EBITDA almost doubling from $22 million to $45 million.
Financial Stability
ICL ended the quarter with $287 million in cash and cash equivalents, down by approximately 23% year-over-year. Long-term debt stood at $1,850 million, a decrease of nearly 13% compared to the previous year.
The company generated $316 million in cash from operating activities in the reported quarter.
Looking Ahead: Strategic Guidance
ICL revised its full-year 2024 guidance, anticipating specialties-driven EBITDA of $0.8 billion to $1 billion, up from the prior forecast of $0.7 billion to $0.9 billion. The expected potash sales volumes remain unchanged within the range of 4.6-4.9 million metric tons.
Market Perception: Price Performance
Despite facing headwinds, ICL’s shares have witnessed a 31.1% decline in the past year, outstripping the industry’s fall of 23.9%.
Image Source: Zacks Investment Research
Industry Reflection: Zacks Rank & Key Picks
ICL currently holds a Zacks Rank #3 (Hold).
Other promising stocks in the Basic Materials sector include Newmont Corporation (NEM), Franco-Nevada Corporation (FNV), and Agnico Eagle Mines Limited (AEM). Newmont and Franco-Nevada have a Zacks Rank #1 (Strong Buy), while Agnico Eagle holds a Zacks Rank #2 (Buy).
Zacks projects Newmont’s current-year earnings to rise by 75%, with the consensus estimate for NEM’s earnings climbing 16% in the last 60 days. The stock has appreciated by nearly 28.8% over the past year.
Franco-Nevada’s current-year earnings consensus stands at $3.27, showcasing an upward trend in estimates. The company has consistently beaten earnings estimates, with an average surprise of 10.5%.
Agnico Eagle’s current fiscal year earnings estimate is $3.65, pointing towards a 63.7% year-over-year increase. With a pattern of surpassing estimates, the stock has surged by 70% in the past year.