Shares of the Livent Corporation (LTHM) stock were rising in the pre-market trading session today on August 11, 2021. LTHM stock price saw a push of 3.72% to reach $26.18 a share as of this writing. The stock was performing well in the previous trade and went up by 12.33% at closing. Let’s understand the reason behind this bull.
What’s Happening?
Livent Corporation is the manufacturer and seller of performance lithium compounds based in Philadelphia, Pennsylvania. The stock released its second-quarter 2021 financial results last week that have beaten both revenue and sales estimates. Vertical Research Partners in response to the earnings release upgraded LTHM stock from sell to hold. Citigroup increased the price target of LTHM stock from $22 to $25. However, Bank of America raised the price target of this stock to just $18 and reiterated its underperforming rating to remain to sell. Let’s see its recent financial results.
LTHM Stock Q2,2021 Financial Results:
- Livent stock generated $102.2 million revenue in Q2, 2021, 11% and 57% higher than Q1,2021 and Q2,2020 respectively
- The GAAP net income of the LTHM stock for the reported quarter was $6.5 million, or 3 cents per diluted share.
- Adjusted EBITDA of the LTHM stock was $16.0 million representing a 44% and 150% increase from Q1,2021 and Q2,2020.
- Adjusted earning per share of the Livent stock was 4 cents per share in the second quarter of 2021
Recent Developments of LTHM stock:
In June, Livent stock did launch and complete the public equity issuance. The LTHM stock will use gross proceeds of $262 million from this offering in lithium capacity expansion especially in Argentina. The stock earlier this year resumed capacity expansion projects in Argentina and United States. In June, Livent stock did release its 2020 Sustainability Report that described its ESG progress, sustainability goals, and transparency.
Financial Outlook:
Management of the LTHM stock is foreseeing the improved market conditions as well as the stock’s financial position. That is why the stock’s full-year 2021 guidance for revenue and Adjusted EBITDA has been increased. Livent stock expects its revenue for the full year 2021 between $370 million to $390 million. The previous full-year 2021 guidance for revenue was $335 million to $365 million. The revised guidance for Adjusted EBITDA is in the range of $55 million to $70 million as compared to $40 million to $60 million previously estimated.
Wrap Up
So far so good for Livent stock as far as market sentiment is concerned. The stock has shown exceptional performance in the second quarter of 2021 due to improved market conditions. The sales for the lithium performance compounds have been increased in the reported tenure. Increased revenue and adjusted EBITDA guidance show that LTHM can be a good bet for investors in the long run.
