Molycorp Earnings: Investors Cheer Double Digit Revenue Growth

Molycorp Inc. (NYSE:MCP) swung to a loss in the third quarter, missing analysts’ forecast. Molycorp is a rare earth oxide producer in the Western Hemisphere. The company owns fully developed rare earth projects outside of China. It is a development stage company.

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Molycorp Inc. Earnings Cheat Sheet

Results: Reported a loss of $15.5 million (19 cents per diluted share) in the quarter. Molycorp Inc. had a net income of $45.1 million or 49 cents per share in the year-earlier quarter.

Revenue: Rose 48.9% to $205.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Molycorp Inc. fell short of the mean analyst estimate of one cent per share.

Quoting Management: “We are seeing customer demand beginning to stabilize,” Smith said. “We have customer agreements in place, or are in advanced discussions and product qualification efforts with customers, on sales in excess of our Phase one capacity. In the Lanthanum and NdPr markets, we are seeing demand that will move us into Phase two production relatively quickly. With cerium, our commercialization of SorbXTM products continues to gain traction in the marketplace.”

Key Stats:

The company has now missed analyst estimates for the last four quarters. It fell short by 16 cents in the second quarter, by 2 cents in the first quarter, and by one cent in the fourth quarter of the last fiscal year.

Revenue has increased for four quarters in a row. Revenue increased 5% to $104.6 million in the second quarter. The figure rose more than threefold in the first quarter from the year earlier and climbed more than sixfold in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 14 cents per share to 2 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. At 39 cents per share, the average estimate for the fiscal year has fallen from 95 cents ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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