SQM's Earnings Drop 56% as Lithium Revenue Plunges 45%
Chilean lithium giant Sociedad Quimica y Minera de Chile (NYSE: SQM), or SQM, released lower-than-expected third-quarter revenue and earnings on Wednesday night. The main culprits for the disappointing results were significantly lower average sales prices in the company's lithium and fertilizer businesses.
SQM's report doesn't bode well for its stock's performance on Thursday. That said, the stock's price movement will also be influenced by the information management shares on Thursday's earnings call and the overall performance of the market.
SQM is widely viewed as the world's second-largest lithium producer, behind North Carolina-based Albemarle. Demand for the silvery-white metal has surged in recent years, driven by the rapid adoption of electric vehicles (EVs), which are powered by lithium-ion batteries. However, after soaring to all-time highs last year, lithium prices have significantly retreated.
Source Fool.com
Sociedad Quimica y Minera de Chile SA ADR Stock
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