Livent Corporation is scheduled to release its third-quarter 2023 earnings after the closing bell on October 31.
While Livent has exceeded the Zacks Consensus Estimate for earnings in three of the last four quarters, its performance on the other occasion was in line with expectations. The company has an average earnings surprise of approximately 19% over the past four quarters. The third quarter is expected to benefit from increased demand for lithium, although weaker prices and higher costs may have negatively impacted Livent’s performance.
Over the past year, Livent’s stock has declined by 51.1%, whereas the industry has experienced a 3.6% increase.
What Do the Estimates Say?
According to the Zacks Consensus Estimate, Livent is expected to report consolidated revenues of $274.8 million for the third quarter, reflecting a year-over-year increase of approximately 18.7%.
Factors to Watch For
Livent is expected to have benefited from strong customer demand in the third quarter, driven by increased electric vehicle (EV) sales and higher battery installations. However, lower market prices for lithium products may have led to decreased realized pricing, impacting the company’s performance. Higher operating costs may have also affected Livent’s margins.
Zacks Model
Based on our analysis, our model does not predict an earnings beat for Livent this season. Although a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 typically indicate a higher chance of an earnings beat, this is not the case for Livent. The company currently has a -4.39% Earnings ESP and a Zacks Rank of 3.
Stocks That Warrant a Look
Our model suggests that there are some companies in the basic materials sector that may post an earnings beat this quarter:
- Axalta Coating Systems Ltd. (AXTA), scheduled to release earnings on November 1, has a 5.39% Earnings ESP and a Zacks Rank of 3.
- CF Industries Holdings, Inc. (CF), also releasing earnings on November 1, has a 4.79% Earnings ESP and a Zacks Rank of 3.
- Kinross Gold Corporation (KGC), reporting its third-quarter earnings on November 8, has a 2.96% Earnings ESP. The company carries a Zacks Rank of 3.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
