Israel-based ICL Group Ltd. (ICL), which is engaged in the manufacture and sale of chemicals and fertilizers, rose 10.3% in premarket trading at the latest check. The upbeat sentiment followed upbeat first quarter 2022 results and a strong outlook from the company.
The company’s reported earnings per share of $0.48 per share comfortably beat estimates of $0.29 per share. Revenue of $2.5 billion topped estimates of $2.1 billion and grew more than 67% year over year. For 2022, the company now expects adjusted EBITDA to be in the range of $3,500 million to $3,750 million.
Raviv Zoller, ICL’s President and CEO, said, “We have remained focused on long-term cash generation by innovating within our specialty business product portfolio and driving cost efficiencies… We will continue to optimize our customer and supplier relationships, to manage the global supply challenges and work to ensure a consistent and reliable product supply for our customers.”
repeat merit hits
This quarter marks ICL’s eighth straight profit increase.
At the same time, the company is increasing its dividend. ICL currently has a payout ratio of 165.53%, which translates to a dividend yield well above the industry average.
Although ICL only has an analyst rating, many of its other factors point to a promising stock. The technicals are positive and bloggers are bullish on this stock. The fertilizer industry should thrive in the wake of the Russia-Ukraine conflict, and a healthy dividend could make this stock even more attractive to investors.