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MP Materials Corp. (MP - Free Report) reported second-quarter 2021 earnings per share of 15 cents, which marks a turnaround from the prior-year quarter’s loss per share of 92 cents. The bottom-line figure beat the Zacks Consensus Estimate of 12 cents per share. This upbeat performance was driven by strong demand for rare earth materials.
The company generated revenues of $73 million in second-quarter 2020, reflecting a year-over-year surge of 141%. The top line also topped the Zacks Consensus Estimate of $58 million. This improved performance was fueled by increases in the realized sales prices of rare earth oxide (REO) in concentrate, partly offset by slightly lower metric tons (MT) of REO sold.
The realized sales price shot up 137% on higher demand for rare earths, which boosted market prices. The REO production volume rose 11% year over year to 10,305 MT. Sales volumes came in 4% lower than the prior-year quarter to 9,877 MT due to the timing of shipments.
Production cost improved 9% year over year to $1,538 per MT of REO. Total operating costs plummeted 56% to $41 million from the year-ago quarter. Adjusted EBITDA came in at $46 million in the reported quarter, reflecting a significant surge of 491%. This was aided by higher per unit profitability, partly muted by elevated public company costs as well as growth and development costs. Adjusted EBITDA margin was 63.5% compared with the year-ago quarter’s 25.8%.
Share Price Performance
So far this year, MP Materials has gained 15.4% compared with the industry’s growth of 16%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
MP Materials currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include Nucor Corporation (NUE - Free Report) , Cabot Corporation (CBT - Free Report) and Dow Inc. (DOW - Free Report) .
Nucor has a projected earnings growth rate of 455% for 2021. The company’s shares have soared 97.9% so far this year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot has an expected earnings growth rate of 137% for the current fiscal year. The company’s shares have gained 21.8% so far this year. It currently sports a Zacks Rank #1.
Dow has an estimated earnings growth rate of 403% for the current year. So far this year, the company’s shares have gained 14.1%. It currently carries a Zacks Rank #2 (Buy).
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MP Materials' (MP) Q2 Earnings & Sales Beat Estimates, Up Y/Y
MP Materials Corp. (MP - Free Report) reported second-quarter 2021 earnings per share of 15 cents, which marks a turnaround from the prior-year quarter’s loss per share of 92 cents. The bottom-line figure beat the Zacks Consensus Estimate of 12 cents per share. This upbeat performance was driven by strong demand for rare earth materials.
The company generated revenues of $73 million in second-quarter 2020, reflecting a year-over-year surge of 141%. The top line also topped the Zacks Consensus Estimate of $58 million. This improved performance was fueled by increases in the realized sales prices of rare earth oxide (REO) in concentrate, partly offset by slightly lower metric tons (MT) of REO sold.
The realized sales price shot up 137% on higher demand for rare earths, which boosted market prices. The REO production volume rose 11% year over year to 10,305 MT. Sales volumes came in 4% lower than the prior-year quarter to 9,877 MT due to the timing of shipments.
Production cost improved 9% year over year to $1,538 per MT of REO. Total operating costs plummeted 56% to $41 million from the year-ago quarter. Adjusted EBITDA came in at $46 million in the reported quarter, reflecting a significant surge of 491%. This was aided by higher per unit profitability, partly muted by elevated public company costs as well as growth and development costs. Adjusted EBITDA margin was 63.5% compared with the year-ago quarter’s 25.8%.
Share Price Performance
So far this year, MP Materials has gained 15.4% compared with the industry’s growth of 16%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
MP Materials currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include Nucor Corporation (NUE - Free Report) , Cabot Corporation (CBT - Free Report) and Dow Inc. (DOW - Free Report) .
Nucor has a projected earnings growth rate of 455% for 2021. The company’s shares have soared 97.9% so far this year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot has an expected earnings growth rate of 137% for the current fiscal year. The company’s shares have gained 21.8% so far this year. It currently sports a Zacks Rank #1.
Dow has an estimated earnings growth rate of 403% for the current year. So far this year, the company’s shares have gained 14.1%. It currently carries a Zacks Rank #2 (Buy).