Livent Corp. Misses Expectations and Lowers Guidance for the Year

Shares of Livent Corp. (NYSE: LTHM) experienced a significant drop of more than 4% in the extended session on Tuesday following the release of their third-quarter results. The lithium-ore mining company failed to meet Wall Street expectations and subsequently lowered its guidance for the year.

In the third quarter, Livent reported earnings of $87.4 million, or 42 cents per share, compared to $77.6 million, or 37 cents per share, in the same period last year. After adjusting for one-time items, the company earned 44 cents per share. While volumes sold remained relatively flat, average realized prices decreased. However, overall costs were lower, partially offsetting the impact.

Unfortunately, revenue also faced a decline of 9%, reaching $211.4 million. According to analysts polled by FactSet, Livent was expected to report adjusted earnings of 48 cents per share on sales of $264 million.

Looking ahead, Livent has adjusted its 2023 revenue projection to be between $890 million and $940 million. This is a significant decrease from the previous estimate of $1.025 billion to $1.125 billion. Despite this revision, Livent’s CEO, Paul Graves, assured stakeholders that the company is actively working with customers to meet the increasing lithium demand. Additionally, they are also preparing to ramp up production volumes with capacity expansions set to begin in 2024.

Livent Corp. will need to regroup and focus on strategies that can help it overcome these challenges in an ever-changing market. While the company faces hurdles, its ability to adapt and increase production in response to demand will be crucial for long-term success.

Key Details:

• Livent Corp.’s shares dropped over 4% after disappointing Q3 results.
• In Q3, the company earned $87.4 million, or 42 cents per share.
• Adjusted earnings were 44 cents per share after factoring in one-time items.
• Volumes sold remained flat, but average realized prices decreased.
• Revenue experienced a decline of 9% to $211.4 million.
• Analysts expected adjusted earnings of 48 cents per share on sales of $264 million.
• Livent revised its 2023 revenue projection to $890 million to $940 million, down from the previous estimate of $1.025 billion to $1.125 billion.
• The company is actively working with customers to meet increasing lithium demand and plans to increase production volumes from capacity expansions in 2024.