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MP Materials (MP) Q2 Earnings & Sales Top Estimates, Up Y/Y
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MP Materials Corp. (MP - Free Report) reported adjusted earnings per share (EPS) of 43 cents in second-quarter 2022, surging 139% from the prior-year quarter’s levels. The bottom line also beat the Zacks Consensus Estimate of 33 cents per share. This upbeat performance was driven by strong realized pricing and cost actions and higher adjusted EBITDA.
The company generated revenues of $144 million in the second quarter of 2022, reflecting a year-over-year jump of 96%. The top line beat the Zacks Consensus Estimate of $125 million. This improved performance was fueled by increases in the realized sales prices of rare earth oxide (“REO”) in concentrate.
The realized sales price shot up 89% on higher demand for rare earths, which boosted market prices. The REO production volume declined to 10,300 MT from the prior-year quarter’s 10,305 MT.
Sales volumes were 1% higher than the prior-year quarter at 10,000 MT on improved production volumes and the timing of shipments.
Production cost moved up 14% year over year to $1,750 per MT of REO. Total operating costs rose 18% to $48 million from the year-ago quarter. Adjusted EBITDA increased 137% year over year to $110 million. The upside can be attributed to higher per-unit profitability, partly offset by higher personnel and other general and administrative costs and advanced projects and development costs. Adjusted EBITDA margin was 77% compared with the year-ago quarter’s 63%.
Price Performance
In the past year, MP Materials’ shares have declined 1.7% compared with the industry’s decline of 25.1%.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
MP Materials currently sports a Zacks Rank #2 (Buy).
Some other top-ranked stocks worth considering in the basic materials space include Cabot Corporation (CBT - Free Report) , Ashland Global Holdings Inc. (ASH - Free Report) and Albemarle Corporation (ALB - Free Report) .
Cabot, currently carrying a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 22.5% for the current fiscal year. The Zacks Consensus Estimate for CBT's earnings for the current fiscal has been revised 0.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 32% over a year.
Ashland, currently carrying a Zacks Rank #2, has a projected earnings growth rate of 50.9% for fiscal 2022. The Zacks Consensus Estimate for ASH’s fiscal 2022 earnings has been revised 10.5% upward in the past 60 days.
ASH’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters. It has a trailing four-quarter earnings surprise of roughly 1.82%, on average. ASH shares are up around 20.9% in a year.
Albemarle has a projected earnings growth rate of 247% for the current year. The Zacks Consensus Estimate for ALB’s current-year earnings has been revised 7.8% upward in the past 60 days.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 20%. ALB has gained roughly 18% in a year. The company has a Zacks Rank #2.
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MP Materials (MP) Q2 Earnings & Sales Top Estimates, Up Y/Y
MP Materials Corp. (MP - Free Report) reported adjusted earnings per share (EPS) of 43 cents in second-quarter 2022, surging 139% from the prior-year quarter’s levels. The bottom line also beat the Zacks Consensus Estimate of 33 cents per share. This upbeat performance was driven by strong realized pricing and cost actions and higher adjusted EBITDA.
The company generated revenues of $144 million in the second quarter of 2022, reflecting a year-over-year jump of 96%. The top line beat the Zacks Consensus Estimate of $125 million. This improved performance was fueled by increases in the realized sales prices of rare earth oxide (“REO”) in concentrate.
The realized sales price shot up 89% on higher demand for rare earths, which boosted market prices. The REO production volume declined to 10,300 MT from the prior-year quarter’s 10,305 MT.
Sales volumes were 1% higher than the prior-year quarter at 10,000 MT on improved production volumes and the timing of shipments.
Production cost moved up 14% year over year to $1,750 per MT of REO. Total operating costs rose 18% to $48 million from the year-ago quarter. Adjusted EBITDA increased 137% year over year to $110 million. The upside can be attributed to higher per-unit profitability, partly offset by higher personnel and other general and administrative costs and advanced projects and development costs. Adjusted EBITDA margin was 77% compared with the year-ago quarter’s 63%.
Price Performance
In the past year, MP Materials’ shares have declined 1.7% compared with the industry’s decline of 25.1%.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
MP Materials currently sports a Zacks Rank #2 (Buy).
Some other top-ranked stocks worth considering in the basic materials space include Cabot Corporation (CBT - Free Report) , Ashland Global Holdings Inc. (ASH - Free Report) and Albemarle Corporation (ALB - Free Report) .
Cabot, currently carrying a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 22.5% for the current fiscal year. The Zacks Consensus Estimate for CBT's earnings for the current fiscal has been revised 0.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 32% over a year.
Ashland, currently carrying a Zacks Rank #2, has a projected earnings growth rate of 50.9% for fiscal 2022. The Zacks Consensus Estimate for ASH’s fiscal 2022 earnings has been revised 10.5% upward in the past 60 days.
ASH’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters. It has a trailing four-quarter earnings surprise of roughly 1.82%, on average. ASH shares are up around 20.9% in a year.
Albemarle has a projected earnings growth rate of 247% for the current year. The Zacks Consensus Estimate for ALB’s current-year earnings has been revised 7.8% upward in the past 60 days.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 20%. ALB has gained roughly 18% in a year. The company has a Zacks Rank #2.