Follow MP Materials to never miss an important update.
After MP Materials reported its November results, we upgraded our rating from Avoid to Watch. We raised our quality score to 3.4 because we now rate its sales growth potential higher, though we lowered our score for how much profit it makes on its investments. We have started tracking the income the company receives from its price protection agreements and its sales to aerospace and defense customers. We also updated our projections for revenue and the total amount of neodymium-praseodymium the company will produce over the next year.
MP Materials earned about 4 cents per share this quarter, beating the loss analysts expected. Revenue reached about 156 million dollars as the company ramped up production of NdPr, a rare earth metal used in powerful magnets for electric vehicles and wind turbines. Production of these metals rose 41 percent compared to last year.
The most important development is that the company finished qualifying its magnets for General Motors. This means it is no longer just a miner digging rocks out of the ground; it is now a manufacturer of high-value components. While the stock fell about 6 percent today alongside a broader market drop, the start of magnet revenue in the fourth quarter is a major step toward proving the business can earn more profit per pound of material it mines.
See the full quarter, and how our tracked metrics did
Source: Company earnings report
The company reports its latest numbers today. Analysts are looking for a loss of about 2 cents per share on revenue of roughly 120 million dollars. For a business that has struggled with low prices for its rare earth metals, the focus is on whether it is making progress on its shift to high-margin magnets. We are watching for updates on production volumes and any signs that the pricing environment for neodymium-praseodymium is starting to stabilize.
MP Materials is scheduled to report its quarterly results on November 5. Analysts are looking for revenue of about 120 million dollars and a small loss per share. The key thing to watch is the company's progress in refining its own rare earth metals rather than just mining them. Investors will be looking for updates on production volumes for neodymium-praseodymium, which is essential for electric vehicle magnets, and whether the company is getting closer to making its own finished magnets in Texas.
The US government has officially reversed a push for stricter fuel economy rules, lowering the efficiency standards that automakers must meet. This change makes it easier for car companies to continue selling gas-powered vehicles rather than switching their fleets to electric models.
This is a concern for MP Materials because its business is built on supplying the rare earth magnets used in electric vehicle motors. If carmakers slow down their shift to electric power, it could lead to weaker demand for the refined metals and magnets the company produces at its California and Texas sites.
Source: Reuters
Management has established a reliable pattern of clearing their own bars, delivering six consecutive beats as they transition from a simple miner to a manufacturer.
| Expectation | |
|---|---|
| EPS | $-0.01 |
| Revenue | $137M |
Follow MP Materials to get the latest and most important updates.
Follow MP