Copyright Benzinga
Rare earth minerals company MP Materials (NYSE:MP) is set to report third-quarter financial results Thursday after market close. Here are the earnings estimates, what analysts are saying and key items to watch. Earnings Estimates: Analysts expect MP Materials to report third-quarter revenue of $54.92 million. That’s down from $62.93 million in last year's third quarter, according to data from Benzinga Pro. The company has beaten analyst estimates for revenue in three of the last four quarters, including the recently reported second quarter. Analysts expect MP Materials to report a loss of 18 cents per share for the third quarter, down from a loss of 12 cents per share in last year's third quarter. The company has beaten analyst estimates for earnings per share in three of the last four quarters, including the recently reported second quarter. Read Also: Top Stocks With Earnings This Week: Joby, IonQ, AMD and More What Analysts Are Saying: With increased attention on rare earth stocks, MP Materials is a standout in the sector, Bank of America Securities analyst Lawson Winder said in a recent note. The analyst maintained a Buy rating on the stock while raising the price target from $78 to $112. Winder is optimistic for the stock and sector. Demand for neodymium-iron-boron magnets is expected to double by 2035, with use cases expanding across electric vehicles, robots, and aircraft. With the backing of the government, key partnerships and a supply chain in America, MP Materials stands out to the analyst. Limited supply of magnets from outside of China has left companies and investors with limited options for exposure to the high-growth sector. Surging demand and new pricing models create an opportunity for MP Materials, the analyst added. A fully integrated supply chain for MP Materials was highlighted by the analyst as a strength and part of the reason why the company was able to sign a deal with the Department of Defense. Here are more recent analyst ratings on MP Materials and their price targets: BMO Capital: Reinstated Market Perform rating, with a price target of $76 Daiwa Capital: Initiated with Outperform rating, with a price target of $80 Key Items to Watch: MP Materials stock surged in July after the Department of Defense announced a 15% stake in the company through a $400 million investment in preferred stock and warrants. The company also saw increased investor interest after announcing a $500 million deal with tech giant Apple Inc (NASDAQ:AAPL) in July. The deal will see Apple secure a supply of rare earth magnets from the company. "Rare earth materials are essential for making advanced technology, and this partnership will help strengthen the supply of these vital materials here in the United States," said Apple CEO Tim Cook at the time. As part of the deal, MP Materials receives a $200 million prepayment from Apple to support production at an upcoming facility in Texas. This marks the second quarterly results from MP Materials since these two announcements and could provide more details on where things stand for the rare earth minerals sector, especially outside of China. Rare earth stocks had surged in recent months, before falling over the last month as China announced an end to its export restrictions on rare earth minerals. JPMorgan helped spark a recent boost in the sector by announcing investment pledges of up to $1.5 trillion in sectors like critical minerals and frontier technologies. The company has not announced direct investments in MP Materials yet, but the stock could be on the watchlist. MP Materials saw second-quarter revenue up 84% year-over-year with strong production figures, with record NdPr oxide production for the company. Analysts expect revenue and earnings per share to decline on a year-over-year basis. And investors will be closely watching the financial figures and any commentary on future guidance. After shares hit all-time highs in October, the stock has fallen. MP Price Action: MP stock is down 0.2% to $54.78 on Wednesday. Its 52-week trading range is $15.56 to $100.25. Shares are down 26.3% over the last month, falling significantly since hitting all-time highs. Shares remain up 234% year-to-date. Yet, investors want to see a positive earnings report and commentary on future growth to help boost the stock. Read Next: Best ETF For The Critical Minerals Boom? Here Are Rare Earth Winners Image: Shutterstock
