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 second-quarter revenues is currently pegged at $124.7 million, suggesting a 70.6% year-over-year growth. The consensus mark for earnings stands at 36 cents per share. Compared with earnings per share of 15 cents reported in the second quarter of 2021, the consensus mark indicates a solid improvement of 140%. The Zacks Consensus Estimate for earnings for the to-be-reported quarter has moved up 13% over the past 30 days.
Q1 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 30.4%.
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 quarter of 2022, MP Materials produced 10,828 metric tons of REO in concentrate, which marked a 10% growth year on year. This trend is expected to have sustained in the second quarter of 2022, courtesy of the efficiency improvement efforts of the company.
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 COVID-19 impacted logistics costs may have weighed on performance in the second quarter. 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 the Zacks Model Unveils
Our proven model predicts 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 odds of a positive surprise.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for MP Materials is +4.23%.
MP Materials’ shares have fallen 11.7% in the past year compared with the industry’s decline of 27.1%.
Other Stocks Poised to Beat Estimates
Here are some other companies worth considering, as our model shows that these too have the right combination of elements to beat on earnings this season:
Cabot Corporation (CBT - Free Report) , slated to release earnings on Aug 8, has an Earnings ESP of +0.16% and a Zacks Rank #1.
The consensus estimate for Cabot’s fiscal third-quarter earnings has been revised 1% upward in the past 60 days. The Zacks Consensus Estimate for CBT’s earnings for the quarter is pegged at $1.53.
Air Products and Chemicals, Inc. (APD - Free Report) , slated to release earnings on Aug 4, has an Earnings ESP of +0.29% and a Zacks Rank #3.
The Zacks Consensus Estimate for Air Products’ fiscal third-quarter earnings has been stable over the past 60 days. The consensus estimate for APD’s earnings for the quarter stands at $2.61.
ATI Inc. (ATI - Free Report) , scheduled to release earnings on Aug 4, has an Earnings ESP of +0.90% and a Zacks Rank #2.
The Zacks Consensus Estimate for ATI’s second-quarter earnings has been revised 17.8% upward in the past 60 days. The consensus estimate for ATI's earnings for the quarter is currently pegged at 37 cents.
Image: Bigstock
MP Materials (MP) to Post Q2 Earnings: What's in the Cards?
MP Materials Corp. (MP - Free Report) is scheduled to report second-quarter 2022 results after the closing bell on Aug 4.
Q2 Estimates
The Zacks Consensus Estimate for second-quarter revenues is currently pegged at $124.7 million, suggesting a 70.6% year-over-year growth. The consensus mark for earnings stands at 36 cents per share. Compared with earnings per share of 15 cents reported in the second quarter of 2021, the consensus mark indicates a solid improvement of 140%. The Zacks Consensus Estimate for earnings for the to-be-reported quarter has moved up 13% over the past 30 days.
Q1 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 30.4%.
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 quarter of 2022, MP Materials produced 10,828 metric tons of REO in concentrate, which marked a 10% growth year on year. This trend is expected to have sustained in the second quarter of 2022, courtesy of the efficiency improvement efforts of the company.
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 COVID-19 impacted logistics costs may have weighed on performance in the second quarter. 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 the Zacks Model Unveils
Our proven model predicts 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 odds of a positive surprise.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for MP Materials is +4.23%.
Zacks Rank: The company currently has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Price Performance
Image Source: Zacks Investment Research
MP Materials’ shares have fallen 11.7% in the past year compared with the industry’s decline of 27.1%.
Other Stocks Poised to Beat Estimates
Here are some other companies worth considering, as our model shows that these too have the right combination of elements to beat on earnings this season:
Cabot Corporation (CBT - Free Report) , slated to release earnings on Aug 8, has an Earnings ESP of +0.16% and a Zacks Rank #1.
The consensus estimate for Cabot’s fiscal third-quarter earnings has been revised 1% upward in the past 60 days. The Zacks Consensus Estimate for CBT’s earnings for the quarter is pegged at $1.53.
Air Products and Chemicals, Inc. (APD - Free Report) , slated to release earnings on Aug 4, has an Earnings ESP of +0.29% and a Zacks Rank #3.
The Zacks Consensus Estimate for Air Products’ fiscal third-quarter earnings has been stable over the past 60 days. The consensus estimate for APD’s earnings for the quarter stands at $2.61.
ATI Inc. (ATI - Free Report) , scheduled to release earnings on Aug 4, has an Earnings ESP of +0.90% and a Zacks Rank #2.
The Zacks Consensus Estimate for ATI’s second-quarter earnings has been revised 17.8% upward in the past 60 days. The consensus estimate for ATI's earnings for the quarter is currently pegged at 37 cents.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.