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What's in the Cards for Lithium Americas (LAC) Q3 Earnings?

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Lithium Americas Corp. (LAC - Free Report) is expected to release third-quarter 2020 results on Nov 10.

The Vancouver, Canada-based resource company delivered an earnings surprise of 14.3% in the last reported quarter.

The company’s shares have surged 215.4% year to date compared with the industry’s 1% fall.

 


 

 

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

Factors to Consider

Lithium Americas is yet to generate significant revenues from operations. It remains focused on advancing two significant lithium projects — the Cauchari-Olaroz lithium brine project in Argentina and the Thacker Pass project (a sedimentary-based lithium property) in Nevada. Cauchari-Olaroz is in the development phase while Thacker Pass is in the exploration stage.

At the end of the second quarter of 2020, Cauchari-Olaroz project was 47% complete. The fully-owned Thacker Pass project is on track to obtain major construction permits by the end of first-quarter 2021. The company is advancing engineering work and mine plan design for Thacker Pass. Lithium Americas remains committed to advance these projects to production to address the rising global demand for lithium.

The company saw higher exploration expenses in second-quarter 2020 and first-half 2020 on a year over year basis. Exploration expenses for both periods include costs related to the Thacker Pass project. The increase is mainly attributable to expenses related to the definitive feasibility study incurred in the second quarter and timing and scheduling of permitting and other costs related to Thacker Pass. Exploration costs associated with Thacker Pass are likely to have affected the company’s bottom line in the third quarter.

 

Lithium Americas Corp. Price and EPS Surprise

 

Lithium Americas Corp. Price and EPS Surprise

Lithium Americas Corp. price-eps-surprise | Lithium Americas Corp. Quote

 

Zacks Model

Our proven model does not conclusively predict an earnings beat for Lithium Americas this season. 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. But that’s not the case here.

Earnings ESP: Earnings ESP for Lithium Americas is 0.00%. The Zacks Consensus Estimate for earnings for the third quarter is currently pegged at a loss of 10 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Lithium Americas currently carries a Zacks Rank #5 (Strong Sell).

Stocks That Warrant a Look

Here are some companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:

Magna International Inc. (MGA - Free Report) , scheduled to release earnings on Nov 6, has an Earnings ESP of +1.92% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cabot Corporation (CBT - Free Report) , scheduled to release earnings on Nov 23, has an Earnings ESP of +26.44% and carries a Zacks Rank #3.

Deere & Company (DE - Free Report) , scheduled to release earnings on Nov 25, has an Earnings ESP of +9.76% and carries a Zacks Rank #3.

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