Piedmont Lithium ( PLL Quick Quote PLL - Free Report) is anticipated to report loss per share when it reports third-quarter 2022 results later this week. Q3 Estimates
The Zacks Consensus Estimate for PLL’s third-quarter earnings is currently pegged at a loss of 37 cents per share. Over the past 30 days, the estimate has moved down from the earlier expected loss of 26 cents per share to the current estimate of a loss of 37 cents per share.
In the last reported quarter, Piedmont Lithium reported a loss per share of 53 cents which came in wider than the prior-year quarter’s loss of 48 cents and the Zacks Consensus Estimate of a loss of 29 cents per share. PLL has delivered a negative average surprise of 62.6% in the trailing four quarters.
Factors to Note
Piedmont Lithium is a development stage company focused on building a multi-asset, integrated lithium business which will provide lithium hydroxide to the electric vehicle and battery manufacturing supply chains in the United States. It is currently developing four key capital projects.
When fully operational, PLL expects an estimated annual lithium hydroxide manufacturing capacity of 60,000 metric tons. It aims to start production in 2023 (in Quebec, Canada), then in 2024 (Ghana), 2025 (LHP-2) and 2026 (Carolina Lithium).
The company has not generated any revenues yet. Until commercial production is achieved from operations, Piedmont Lithium will continue to incur operating and investing net cash outflows. PLL’s results in the third quarter of 2022 will reflect the exploration and mine development costs it has been incurring. These include costs in resource exploration, evaluation and development during different phases of its development projects.
Exploration costs incurred before the declaration of proven and probable ore reserves, which primarily include exploration, drilling, engineering, metallurgical test work, site-specific reclamation and compensation for employees associated with exploration activities, are also expensed as incurred. It also includes engineering costs attributable to the evaluation of land for future chemical plants and concentrators, development project management costs, feasibility studies and other project expenses that do not qualify for capitalization.
Third-quarter results will also be impacted by higher General and Administrative expenses due to increased professional fees, including legal and accounting services, consulting services, and insurance expenses as the company became subject to U.S. public company requirements as part of the Redomiciliation (from Australia to Delaware).
Also, employee compensation costs are expected to contribute to a spike in general and administrative expenses due to the hiring of additional management and support staff. All of these factors in the absence of revenues, are likely to lead to a third-quarter loss for PLL.
What Our Zacks Model Indicates
Our proven model predicts an earnings beat for Piedmont Lithium 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 PLL is +9.59%. Zacks Rank: The company currently carries a Zacks Rank of 2. Price Performance Image Source: Zacks Investment Research
Piedmont Lithium’s’ shares have gained 3.3% in the past year compared with the
industry’s decline of 14.7%. 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 Quick Quote 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 Quick Quote 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 Quick Quote 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.
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