SQM 4Q net income $183.8M, est. $216.5M
TL;DR
SQM reported Q4 net income of $183.8M, below the $216.5M estimate, due to lithium market pressures and high costs. Revenue grew to $2.1B, driven by agricultural and chemical segments, but shares fell 2.3% post-announcement.
SQM 4Q net income $183.8M, est. $216.5M
SQM Reports Fourth-Quarter Net Income Below Estimates Amid Market Challenges
Sociedad Química y Minera de Chile (SQM) reported fourth-quarter net income of $183.8 million, falling short of the estimated $216.5 million projected by analysts. The discrepancy reflects ongoing pressures in the lithium market and elevated production costs, according to the company's earnings release.
Revenue for the period reached $2.1 billion, representing an increase from $1.9 billion in the same quarter of the prior year. This growth was driven by sustained demand for SQM's agricultural products and continued contributions from its nitrogen and specialty chemicals segments. However, lithium segment performance weakened due to softer prices and higher operational expenses.
The company attributed the lower-than-expected net income to "market dynamics in the lithium sector and cost inflation," as noted in its quarterly report. Despite these challenges, SQM maintained profitability, supported by cost-control measures and diversified revenue streams.
In post-market trading, SQM's shares declined 2.3% following the earnings announcement. Analysts highlighted the gap between actual results and estimates as a short-term concern, though longer-term fundamentals remain influenced by the company's strategic focus on sustainable agriculture and energy transition materials.
SQM's full-year 2024 results, released concurrently, showed adjusted earnings per share of $2.85, aligning with guidance provided earlier in the year. The company reiterated commitments to operational efficiency and capital allocation discipline in its earnings statement.
Investors are now turning attention to SQM's first-quarter performance and potential adjustments to 2025 guidance, with market conditions for lithium and agricultural commodities expected to remain key variables.
