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Livent (LTHM) to Report Q4 Earnings: What's in the Cards?

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Livent Corporation (LTHM - Free Report) is slated to report fourth-quarter 2021 results after the closing bell on Feb 17. The company’s results are expected to reflect the benefits of higher realized pricing and strong lithium demand.

Livent’s earnings beat the Zacks Consensus Estimate in two of the last four quarters, while missed twice. It has a trailing four-quarter negative earnings surprise of roughly 31.3%, on average. The company posted a negative earnings surprise of 25% in the last reported quarter.

The stock is up 0.6% in the past year compared with the industry’s 13.8% decline.

 

Zacks Investment ResearchImage Source: Zacks Investment Research



Let’s see how things are shaping up for this announcement.

Zacks Model

Our proven model predicts an earnings beat for Livent this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat.

Earnings ESP: Earnings ESP for Livent is +13.64%. The Zacks Consensus Estimate for the fourth quarter is currently pegged at 7 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Livent currently carries a Zacks Rank #3.

What Do the Estimates Say?

The Zacks Consensus Estimate for fourth-quarter consolidated revenues for Livent is currently pegged at $104.5 million, which calls for a rise of around 27.1% year over year.

Some Factors to Watch For

The company is expected to have benefited, in the fourth quarter, from strong demand and higher lithium pricing, aided by strong market conditions. Lithium demand is being driven by higher electric vehicle (EV) sales and significantly higher battery installations for EVs.

Higher realized pricing is expected to have driven the company’s top line and margins in the December quarter. Tight supply-demand conditions are likely to have supported prices in the quarter. Livent is also expected to have gained from a favorable product mix.

 

Livent Corporation Price and EPS Surprise

 

Livent Corporation Price and EPS Surprise

Livent Corporation price-eps-surprise | Livent Corporation Quote

 

Stocks That Warrant a Look

Here are some companies in the basic materials space you may want to consider as our model shows these too have the right combination of elements to post an earnings beat this quarter:

Nutrien Ltd. (NTR - Free Report) , scheduled to release earnings on Feb 16, has an Earnings ESP of +2.61% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Nutrien's fourth-quarter earnings has been revised 0.9% upward over the past 30 days. The consensus estimate for NTR’s earnings for the quarter is currently pegged at $2.30.

Element Solutions Inc (ESI - Free Report) , slated to release earnings on Feb 22, has an Earnings ESP of +3.45% and carries a Zacks Rank #3.
 
The consensus estimate for Element Solutions’ fourth-quarter earnings has been stable in the past 30 days. The Zacks Consensus Estimate for ESI’s earnings is pegged at 29 cents.

Newmont Corporation (NEM - Free Report) , scheduled to release earnings on Feb 24, has an Earnings ESP of +3.37% and carries a Zacks Rank #3.

The consensus estimate for Newmont’s fourth-quarter earnings has been revised 2.7% upward over the past 30 days. The Zacks Consensus Estimate for NEM’s earnings for the quarter stands at 76 cents.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.