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MP Materials (MP) to Post Q1 Earnings: What's in the Offing?
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MP Materials Corp. (MP - Free Report) is scheduled to report first-quarter 2021 results after the closing bell on May 6.
Q1 Estimates
The Zacks Consensus Estimate for first-quarter revenues is currently pegged at $43.16 million. The estimate for earnings stands at 9 cents per share. The earnings estimate has remained unchanged over the past 30 days.
Q4 Results
In the last reported quarter, MP Materials reported year-over-year increase in both revenues and earnings. Both the metrics also beat the Zacks Consensus Estimate.
Factors to Note
The accelerating global transformation towards electrification and decarbonization has been creating strong demand for critical rare earth materials. Also, the company has been implementing efficiency improvements in the processing of rare earth materials, which has resulted in significantly higher production of rare earth oxide (REO) starting in the second half of 2019. In the fourth quarter, MP Materials produced 9,337 metric tons of contained REO in concentrate, up 8% year over year. Overall in 2020, the company produced 38,503 metric tons of REO, marking an improvement of 40% year over year. This trend might have continued in the first quarter as well.
The lifting of Chinese import duties contributed to the improvement in realized price per REO metric tons in the past three quarters. This, in turn, might get reflected in the first-quarter results. Higher volumes sold and increased realized pricing driven by higher market prices and the lifting of certain import duties are likely to have benefited the to-be-reported quarter’s performance. Further, lower production costs reflecting the increased efficiency in processing rare earth concentrate, may have contributed to the first-quarter margins.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for MP Materials this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here as you will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for MP Materials is 0.00%.
Zacks Rank: The company currently carries a Zacks Rank #3.
Price Performance
MP Materials’ shares have soared 172.6% in the past six months compared with the industry’s rally of 42.8%.
Stocks Poised to Beat Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Hudbay Minerals Inc. (HBM - Free Report) has an Earnings ESP of +57.26% and a Zacks Rank of 3 currently.
GrowGeneration Corp (GRWG - Free Report) currently has a Zacks Rank #3 and an Earnings ESP of +3.70%.
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The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
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MP Materials (MP) to Post Q1 Earnings: What's in the Offing?
MP Materials Corp. (MP - Free Report) is scheduled to report first-quarter 2021 results after the closing bell on May 6.
Q1 Estimates
The Zacks Consensus Estimate for first-quarter revenues is currently pegged at $43.16 million. The estimate for earnings stands at 9 cents per share. The earnings estimate has remained unchanged over the past 30 days.
Q4 Results
In the last reported quarter, MP Materials reported year-over-year increase in both revenues and earnings. Both the metrics also beat the Zacks Consensus Estimate.
Factors to Note
The accelerating global transformation towards electrification and decarbonization has been creating strong demand for critical rare earth materials. Also, the company has been implementing efficiency improvements in the processing of rare earth materials, which has resulted in significantly higher production of rare earth oxide (REO) starting in the second half of 2019. In the fourth quarter, MP Materials produced 9,337 metric tons of contained REO in concentrate, up 8% year over year. Overall in 2020, the company produced 38,503 metric tons of REO, marking an improvement of 40% year over year. This trend might have continued in the first quarter as well.
The lifting of Chinese import duties contributed to the improvement in realized price per REO metric tons in the past three quarters. This, in turn, might get reflected in the first-quarter results. Higher volumes sold and increased realized pricing driven by higher market prices and the lifting of certain import duties are likely to have benefited the to-be-reported quarter’s performance. Further, lower production costs reflecting the increased efficiency in processing rare earth concentrate, may have contributed to the first-quarter margins.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for MP Materials this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here as you will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for MP Materials is 0.00%.
Zacks Rank: The company currently carries a Zacks Rank #3.
Price Performance
MP Materials’ shares have soared 172.6% in the past six months compared with the industry’s rally of 42.8%.
Stocks Poised to Beat Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Commercial Metals Company (CMC - Free Report) has an Earnings ESP of +5.00% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Hudbay Minerals Inc. (HBM - Free Report) has an Earnings ESP of +57.26% and a Zacks Rank of 3 currently.
GrowGeneration Corp (GRWG - Free Report) currently has a Zacks Rank #3 and an Earnings ESP of +3.70%.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>