MP Materials' (MP) Q4 Earnings & Sales Beat Estimates, Up Y/Y
MP Materials Corp. MP reported fourth-quarter 2021 earnings per share of 28 cents, which marked an 87% improvement from the prior-year quarter. The bottom line beat the Zacks Consensus Estimate of 24 cents per share. This upbeat performance was driven by strong demand for rare earth materials that supported prices.
The company generated revenues of $99 million in fourth-quarter 2021, reflecting a year-over-year surge of 135%. The top line topped the Zacks Consensus Estimate of $90 million. This improved performance was fueled by increases in the realized sales prices of rare earth oxide (REO) in concentrate, partly offset by slightly lower metric tons (MT) of REO sold.
The realized sales price shot up 148% on higher demand for rare earths, which boosted market prices. The REO production volume rose 10% year over year to 10,261 MT. This was driven by improvement in the efficiency of the company’s processing operations, including higher mineral recoveries and ore feed rates, partially offset by fewer production hours primarily due to the timing of plant turnarounds. Sales volumes were 6% lower than the prior-year quarter to 9,674 MT due to 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 declined 4% year over year to $1,525 per MT of REO. Total operating costs rose 22% to $42 million from the year-ago quarter. Adjusted EBITDA came in at $71 million in the reported quarter, reflecting a surge of 297%. This was aided by higher per-unit profitability, partly muted by elevated public company costs and growth and development costs. Adjusted EBITDA margin was 72% compared with the year-ago quarter’s 42.6%.
In 2021, MP Materials produced 42,413 metric tons of REO in concentrate in 2021 — the highest rare earth production in the United States and the history of the Mountain Pass mine. MP sold a record 42,158 metric tons of REO, generating record revenues of $332 million in 2021. Revenues increased 147% year over year.
Share Price Performance
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Over the past year, MP Materials has gained 4.4% compared with the industry’s growth of 1.3%.
Zacks Rank & Other Stocks to Consider
MP Materials currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Some other top-ranked stocks in the basic materials space include Commercial Metals Company CMC, AdvanSix Inc. ASIX and Allegheny Technologies Incorporated ATI. While CMC and ASIX sport a Zacks Rank #1, ATI carries a Zacks Rank #2 (Buy) at present.
Commercial Metals has a projected earnings growth rate of 62% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised upward by 23% in the past 60 days.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 13.1%. CMC’s shares have surged around 44.7% in a year.
AdvanSix has an expected earnings growth rate of 14.6% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised upward by 9.7% in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, while missing on one occasion, the average surprise being 23.6%. ASIX has appreciated around 30.1% in a year.
Allegheny has an expected earnings growth rate of 661.5% for the current year. The Zacks Consensus Estimate for ATI's current-year earnings has been revised upward by 45.6% in the past 60 days.
Allegheny beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 20.9% over a year.
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