MP Materials misses Q4 revenue estimates on ceasing sales to China

Reuters02-27
MP Materials misses Q4 revenue estimates on ceasing sales to China

Overview

  • Rare earth producer's Q4 revenue missed analyst expectations

  • Adjusted EPS for Q4 beat analyst expectations

  • Company awarded $200 mln incentive for new Texas magnetics facility

Outlook

  • MP Materials plans to break ground on Northlake magnetics facility in 2026

  • Company aims to ramp magnet production for General Motors

  • MP Materials expects continued growth in NdPr output

Result Drivers

  • MAGNET PRODUCTION - Produced first NdFeB magnets on commercial equipment at Independence, marking a significant operational milestone

  • REVENUE DECLINE - Ceased all sales to China, leading to a 14% decline in Q4 revenue, partially offset by increased NdPr oxide and magnetic precursor product sales

  • PRICE PROTECTION AGREEMENT - NdPr price floor protection agreement with the DoW significantly boosted Adjusted EBITDA

Company press release: ID:nBw8ywR07a

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

Miss

$52.69 mln

$67.38 mln (9 Analysts)

Q4 Adjusted EPS

Beat

$0.09

$0.001 (10 Analysts)

Q4 EPS

$0.05

Q4 Adjusted Net Income

Beat

$18.28 mln

-$2.09 mln (4 Analysts)

Q4 Net Income

$9.43 mln

Q4 Adjusted EBITDA

Beat

$39.22 mln

$32.71 mln (9 Analysts)

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the non-gold precious metals & minerals peer group is "buy"

  • Wall Street's median 12-month price target for MP Materials Corp is $79.00, about 34.7% above its February 25 closing price of $58.66

  • The stock recently traded at 94 times the next 12-month earnings vs. a P/E of 96 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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