ICL Group LtdICL displayed resilience by posting profits of $115 million or 9 cents per share in the second quarter of 2024, a slight dip from $163 million or 13 cents in the same period last year.
Excluding one-time items, adjusted earnings stood at 10 cents per share, surpassing the Zacks Consensus Estimate of 9 cents.
Despite a 6% drop in sales to $1,752 million year over year, the company outperformed expectations, exceeding the Zacks Consensus Estimate of $1,733.2 million.
Resilience in the Face of Challenges
ICL Group Ltd. price-consensus-eps-surprise-chart | ICL Group Ltd. Quote
Thriving Segments
Industrial Products sales rose 5% to $315 million, with EBITDA holding steady at $74 million. This consistent EBITDA growth, attributed to cost-saving measures and enhanced customer connections, marked the third successive quarter of advancement.
Despite a 27.5% decline in Potash segment sales to $422 million, ICL managed an EBITDA of $118 million, showing resilience amidst market fluctuations.
Phosphate Solutions witnessed a 1% sales uptick to $572 million, alongside a robust 13% EBITDA increase to $146 million. Sales surged for the second consecutive quarter, with EBITDA climbing by 11%, setting a promising trajectory for the future.
Growing Solutions segment sales saw a substantial 3% year-over-year rise to $494 million, consequently doubling EBITDA from $22 million to $45 million. This impressive growth underscores ICL’s strategic prowess in the Agricultural sector.
Robust Finances
By the end of the quarter, ICL boasted $287 million in cash and cash equivalents, marking a 23% decrease from the previous year. Long-term debt stood at $1,850 million, symbolizing a 13% decline year over year.
Operating activities generated $316 million in cash during the quarter, solidifying the company’s financial stability amidst market uncertainties.
Strategic Outlook
ICL revised its full-year 2024 guidance, now anticipating specialties-driven EBITDA in the range of $0.8 billion to $1 billion, showcasing the company’s adaptability and strategic foresight in navigating industry challenges.
Market Resilience
Despite a 31.1% decline in ICL’s shares over the past year, the company’s strategic initiatives have outperformed the industry, which experienced a 23.9% decline.
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Market Trends and Picks
ICL currently holds a Zacks Rank #3 (Hold).
In the Basic Materials sector, notable stocks like Newmont Corporation (NEM), Franco-Nevada Corporation (FNV), and Agnico Eagle Mines Limited (AEM) have shown promising results. Newmont and Franco-Nevada are ranked #1 (Strong Buy), while Agnico Eagle holds a Zacks Rank #2 (Buy).
Meticulous analysis predicts a 75% increase in Newmont’s current-year earnings. Meanwhile, Franco-Nevada has shown consistent growth, beating the consensus estimates in the past four quarters. Agnico Eagle Mines has increased its earnings by 63.7% year over year, further elucidating the sector’s performance.
