We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $119 million, suggesting 19% year-over-year growth. The consensus mark for earnings stands at 30 cents per share, indicating an improvement of 11%. The Zacks Consensus Estimate for earnings in the to-be-reported quarter has moved down 12% over the past 30 days.
Q2 Results
In the last reported quarter, MP Materials reported a year-over-year improvement in both revenues and earnings. Both revenues and earnings per share beat the respective Zacks Consensus Estimate. MP Material’s earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 29%.
The accelerating global transformation toward electrification and decarbonization has been spurring strong demand for critical rare earth materials. 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).
In 2021, MP Materials produced 42,413 metric tons of REO in concentrate — the highest rare earth production in the United States and Mountain Pass history. The company sold a record 42,158 metric tons of REO. In the first half of 2022, MP Materials sold 21,706 metric tons of REO in concentrate, which marked a 10% growth year on year. This trend is expected to have sustained in the third quarter of 2022, courtesy of the company’s efficiency improvement efforts.
The realized sales price of rare earth oxide is anticipated to have been higher in the quarter due to elevated market prices supported by strong demand and tight supply. Higher sales volume and prices may have contributed to the company’s performance in the quarter to be reported.
Higher raw material costs and logistics costs may have weighed on performance in the quarter under review. Also, higher personnel and other general and administrative costs, as well as advanced projects and development costs might have dented margins.
Nevertheless, per-unit production costs owing to continued operational efficiencies, benefits from higher sales volumes and increased realized pricing driven by higher market prices may have offset some of these impacts on the company’s bottom-line performance in the quarter to be reported.
What Our Zacks Model Indicates
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 chances of an earnings beat. You can see the complete list of today's Zacks #1 Rank stocks here.
You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for MP Materials is -1.11%.
Zacks Rank: MP currently carries a Zacks Rank of 3.
Price Performance
Image Source: Zacks Investment Research
MP Materials’ shares have fallen 12.2% in the past year compared with the industry’s decline of 16%.
Stocks Poised to Beat Estimates
Here are some Basic Materials stocks, which, according to, our model, have the right combination of elements to post an earnings beat in their upcoming releases.
Albemarle Corporation (ALB - Free Report) , scheduled to release earnings on Nov 2, has an Earnings ESP of +3.64% and sports a Zacks Rank #1.
The consensus estimate for Albemarle’s third-quarter earnings has been revised 9% upward in the past 60 days. The Zacks Consensus Estimate for ALB’s earnings for the quarter is pegged at $6.81.
Koppers Holdings Inc. (KOP - Free Report) , expected to release earnings on Nov 3, has an Earnings ESP of +2.28% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for Koppers’ third-quarter earnings has been revised 2.6% upward in the past 60 days. The consensus estimate for KOP’s earnings for the quarter is currently pegged at $1.17.
Huntsman Corporation (HUN - Free Report) , scheduled to release earnings on Nov 4, has an Earnings ESP of +3.59%.
The consensus estimate for Huntsman’s third-quarter earnings is currently pegged at 72 cents. HUN currently carries a Zacks Rank #3.
Image: Bigstock
MP Materials (MP) to Post Q3 Earnings: What's in Store?
MP Materials Corp. (MP - Free Report) is scheduled to report third-quarter 2022 results after the closing bell on Nov 3.
Q3 Estimates
The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $119 million, suggesting 19% year-over-year growth. The consensus mark for earnings stands at 30 cents per share, indicating an improvement of 11%. The Zacks Consensus Estimate for earnings in the to-be-reported quarter has moved down 12% over the past 30 days.
Q2 Results
In the last reported quarter, MP Materials reported a year-over-year improvement in both revenues and earnings. Both revenues and earnings per share beat the respective Zacks Consensus Estimate. MP Material’s earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 29%.
MP Materials Corp. Price and EPS Surprise
MP Materials Corp. price-eps-surprise | MP Materials Corp. Quote
Factors to Note
The accelerating global transformation toward electrification and decarbonization has been spurring strong demand for critical rare earth materials. 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).
In 2021, MP Materials produced 42,413 metric tons of REO in concentrate — the highest rare earth production in the United States and Mountain Pass history. The company sold a record 42,158 metric tons of REO. In the first half of 2022, MP Materials sold 21,706 metric tons of REO in concentrate, which marked a 10% growth year on year. This trend is expected to have sustained in the third quarter of 2022, courtesy of the company’s efficiency improvement efforts.
The realized sales price of rare earth oxide is anticipated to have been higher in the quarter due to elevated market prices supported by strong demand and tight supply. Higher sales volume and prices may have contributed to the company’s performance in the quarter to be reported.
Higher raw material costs and logistics costs may have weighed on performance in the quarter under review. Also, higher personnel and other general and administrative costs, as well as advanced projects and development costs might have dented margins.
Nevertheless, per-unit production costs owing to continued operational efficiencies, benefits from higher sales volumes and increased realized pricing driven by higher market prices may have offset some of these impacts on the company’s bottom-line performance in the quarter to be reported.
What Our Zacks Model Indicates
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 chances of an earnings beat. You can see the complete list of today's Zacks #1 Rank stocks here.
You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for MP Materials is -1.11%.
Zacks Rank: MP currently carries a Zacks Rank of 3.
Price Performance
Image Source: Zacks Investment Research
MP Materials’ shares have fallen 12.2% in the past year compared with the industry’s decline of 16%.
Stocks Poised to Beat Estimates
Here are some Basic Materials stocks, which, according to, our model, have the right combination of elements to post an earnings beat in their upcoming releases.
Albemarle Corporation (ALB - Free Report) , scheduled to release earnings on Nov 2, has an Earnings ESP of +3.64% and sports a Zacks Rank #1.
The consensus estimate for Albemarle’s third-quarter earnings has been revised 9% upward in the past 60 days. The Zacks Consensus Estimate for ALB’s earnings for the quarter is pegged at $6.81.
Koppers Holdings Inc. (KOP - Free Report) , expected to release earnings on Nov 3, has an Earnings ESP of +2.28% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for Koppers’ third-quarter earnings has been revised 2.6% upward in the past 60 days. The consensus estimate for KOP’s earnings for the quarter is currently pegged at $1.17.
Huntsman Corporation (HUN - Free Report) , scheduled to release earnings on Nov 4, has an Earnings ESP of +3.59%.
The consensus estimate for Huntsman’s third-quarter earnings is currently pegged at 72 cents. HUN currently carries a Zacks Rank #3.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.