Why MP Materials Stock Just Crashed 10%
MP Materials (NYSE: MP) stock tumbled 10.4% through 10:25 a.m. ET Friday after the rare earth mining company missed on both top and bottom lines in last night's second-quarter earnings report.
Heading into the quarter, analysts already weren't optimistic, forecasting a $0.09 per share loss on $40.6 million in sales -- but MP Materials still managed to miss those forecasts. The company's sales were only $31.3 million, and MP lost $0.17 per share, pro forma. Calculated according to generally accepted accounting principles (GAAP), the loss was even bigger -- $0.21 per share.
All is not well at MP Materials, which suffered a 51% decline in sales and swung from a profit in the year-ago quarter to a big net loss this time around. Management blamed "upstream downtime" for part of the loss, but the bigger factor was "a continued weak pricing environment" for the rare earth elements that MP mines.
Source Fool.com
