MP Materials (MP) Q1 Earnings & Sales Top Estimates, Surge Y/Y
MP Materials Corp. MP reported first-quarter 2022 earnings per share of 46 cents, which marked a 318% surge from the prior-year quarter. The bottom line also beat the Zacks Consensus Estimate of 38 cents per share. This upbeat performance was driven by record quarterly revenues on strong realized pricing and gains from the company’s continued focus on cost discipline.
The company generated record revenues of $166 million in the first quarter of 2022, reflecting a year-over-year jump of 177%. The top line beat the Zacks Consensus Estimate of $115 million. This improved performance was fueled by increases in the realized sales prices of rare earth oxide (“REO”) in concentrate and higher metric tons (“MT”) of REO sold.
The realized sales price shot up 135% on higher demand for rare earths, which boosted market prices. The REO production volume rose 10% year over year to 10,828 MT. This was driven by improvement in efficiency of the company’s processing operations, including higher mineral recoveries and ore feed rates.
Sales volumes were 20% higher than the prior-year quarter at 11,706 MT on improved production volumes and the timing of shipments.
MP Materials Corp. Price, Consensus and EPS Surprise
MP Materials Corp. price-consensus-eps-surprise-chart | MP Materials Corp. Quote
Production cost moved up 8% year over year to $1,594 per MT of REO. Total operating costs rose 34% to $51 million from the year-ago quarter. Adjusted EBITDA came in at $132 million in the reported quarter. It marked another record for the company and reflected a surge of 301% year on year. This was aided by higher per-unit profitability, which, in turn, was mainly backed by higher realized prices. Higher personnel, and other general and administrative costs, and advanced projects and development costs had a somewhat dampening effect. Adjusted EBITDA margin was 72% compared with the year-ago quarter’s 42.6%.
Share Price Performance
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Over the past year, MP Materials has gained 42.3% against the industry’s decline of 14.4%.
Zacks Rank & Stocks to Consider
MP Materials currently sports a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Steel Dynamics, Inc. STLD, Commercial Metals Company CMC and AdvanSix Inc. ASIX.
Steel Dynamics, sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 18.5% for the current year. The Zacks Consensus Estimate for STLD's current-year earnings has been revised 32.5% upward over the last 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Steel Dynamics beat the Zacks Consensus Estimate for earnings in each of the last four quarters, the average being roughly 2.5%. STLD has gained around 25% in the past year.
Commercial Metals, carrying a Zacks Rank #1, has a projected earnings growth rate of 78.2% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 31.9% upward over the past 60 days.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing the same in one. It has a trailing four-quarter earnings surprise of roughly 16%, on average. CMC has gained around 21% in a year.
AdvanSix, carrying a Zacks Rank #1, has an expected earnings growth rate of 63.4% for the current year. ASIX's consensus estimate for current-year earnings has been revised 31.9% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters while missing the same once. It has a trailing four-quarter earnings surprise of roughly 23.6%, on average. ASIX has rallied around 50% in a year.
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