Weekly | 360 Smashed Estimates; Lithium Sector Booms!

ASX_Stars
03-01

As of the close on Friday, $S&P/ASX 200(XJO.AU)$ closed at a record high of 7,745.60 on Friday, up 1.33% in the past 5 days. 

1. $Life360(360.AU)$  +43.58%

The company soars 43% after smashing earnings estimates.

It improves both revenue and profits and introduces new revenue stream. The management is also positive about the guidance.

Revenue increased by 33% to $305 million, with subscription revenue up 52%.

Achieved positive adjusted EBITDA of $20.6 million and reduced net loss by $63.5 million.

Expects revenue of $365-375 million and adjusted EBITDA of $30-35 million for FY 2024. 

2. Lithium companies $Arcadium Lithium plc(LTM.AU)$ , $Liontown Resources Ltd(LTR.AU)$ and $Pilbara Minerals Ltd(PLS.AU)$ rose 20%

Lithium companies' stocks surged as lithium carbonate prices in China rose. Analysts anticipate a cooling period in the cathode supply chain destocking.

Some said lithium prices may bottom out. Due to declining lithium prices in recent months, lithium shares have been trading around a low level.

Its 2024 outlook highlighted by a 40% increase in lithium carbonate and hydroxide volumes and projecting $60 to 80 million of realized synergies / cost savings.

Due to falling lithium prices, Pilbara Minerals experienced significant declines in margins, profits, and cash flow.

However, Pilbara Minerals' shares have a price-sales ratio of 3.23x, compared to its 5-year average of 6.53x, trading below their historical average.

3. $Chalice Gold Mines(CHN.AU)$ +18.18%

Chalice Mining's stock rose following its presentation at the BMO Global Metals & Mining Conference, emphasizing its 100% ownership of the Gonneville project, which is one of the largest undeveloped palladium resources globally.

The recent rebound in palladium prices also contributed to investor optimism, suggesting a potential bottoming-out of the metal's price decline.

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