MP Materials (MP) to Post Q1 Earnings: What’s in the Offing?

MP Materials Corp.


is scheduled to report first-quarter 2021 results after the closing bell on May 6.

Q1 Estimates

The Zacks Consensus Estimate for first-quarter revenues is currently pegged at $43.16 million. The estimate for earnings stands at 9 cents per share. The earnings estimate has remained unchanged over the past 30 days.

Q4 Results

In the last reported quarter, MP Materials reported year-over-year increase in both revenues and earnings. Both the metrics also beat the Zacks Consensus Estimate.

Factors to Note

The accelerating global transformation towards electrification and decarbonization has been creating strong demand for critical rare earth materials. Also, the company has been implementing efficiency improvements in the processing of rare earth materials, which has resulted in significantly higher production of rare earth oxide (REO) starting in the second half of 2019. In the fourth quarter, MP Materials produced 9,337 metric tons of contained REO in concentrate, up 8% year over year. Overall in 2020, the company produced 38,503 metric tons of REO, marking an improvement of 40% year over year. This trend might have continued in the first quarter as well.

The lifting of Chinese import duties contributed to the improvement in realized price per REO metric tons in the past three quarters. This, in turn, might get reflected in the first-quarter results. Higher volumes sold and increased realized pricing driven by higher market prices and the lifting of certain import duties are likely to have benefited the to-be-reported quarter’s performance. Further, lower production costs reflecting the increased efficiency in processing rare earth concentrate, may have contributed to the first-quarter margins.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for MP Materials this time around. The combination of a positive

Earnings ESP

and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here as you will see below.

You can uncover the best stocks to buy or sell before they’re reported with our

Earnings ESP Filter


Earnings ESP:

The Earnings ESP for MP Materials is 0.00%.

Zacks Rank:

The company currently carries a Zacks Rank #3.

Price Performance

MP Materials’ shares have soared 172.6% in the past six months compared with the


’s rally of 42.8%.

Stocks Poised to Beat Estimates

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

Commercial Metals Company


has an Earnings ESP of +5.00% and a Zacks Rank #1. You can see

the complete list of today’s Zacks #1 Rank stocks here


Hudbay Minerals Inc.


has an Earnings ESP of +57.26% and a Zacks Rank of 3 currently.

GrowGeneration Corp


currently has a Zacks Rank #3 and an Earnings ESP of +3.70%.

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