MP Materials Q4 Revenue Expected To Rise, But Earnings Could Tumble: Retail Stays Bearish Ahead Of Results

MP Materials has beaten revenue and earnings expectations in two of the previous four quarters. It owns and operates the Mountain Pass mine in California, the only operational rare earth mine and processing facility in the U.S.

MP Materials Corp. (MP) is all set to post a rise in fourth-quarter revenue, according to Wall Street consensus, but there’s a catch.

According to Stocktwits data, MP Materials is expected to post revenue of $52.57 million in Q4, rising by more than 27% year-over-year (YoY).

On the contrary, the rare earth materials company is expected to post a decline in earnings – it could post a loss of $0.13 per share, ballooning from a loss of $0.02 per share during the same period last year.

MP Materials has beaten revenue and earnings expectations in two of the previous four quarters.

The company owns and operates the Mountain Pass mine in California, the only operational rare earth mine and processing facility in the U.S.

The Las Vegas, Nevada-headquartered company is scheduled to post its Q4 earnings in after-market hours on Thursday.

Earlier in January, MP Materials announced that it had restored a rare earth magnet supply chain and began production at its Independence facility in Fort Worth, Texas.

The company has begun commercial production of neodymium-praseodymium metal, which is used in high-performance applications like permanent magnets for electric vehicles (EV), wind turbines, and in the aerospace industry.

It has also commenced trial production of automotive-grade, sintered neodymium-iron-boron magnets.

According to The Fly, analysts at BMO Capital upped their price target for the MP Materials stock to $22 from $19.50, giving it a ‘Market Perform’ rating. The stock is currently trading slightly above BMO’s price target.

On Stocktwits, retail sentiment around the MP Materials stock remained in the ‘bearish’ (33/100) territory, while message volume edged up nominally compared to a day ago.

MP Materials stock has gained over 41% in the past year, but its surge in the past six months has been far more stellar, with gains of nearly 87%.

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