This week, lithium producers Albemarle and Livent announced solid profits and upped their sales expectations for 2022, owing to higher lithium prices, which are highly sought by electric car manufacturers.
This year, lithium stocks have remained hot as global electric vehicle manufacturers ramp up output. Furthermore, due to Russia’s war in Ukraine, lithium prices have surged substantially in recent weeks, with lithium carbonate prices up nearly 70% since the start of the year, after climbing 280 percent last year, according to Tradingeconomics.com data.
Rising lithium demand and higher prices allowed Albemarle, the world’s largest lithium producer, and Livent, the world’s third-largest miner, to report solid quarterly financial results and provide investors with guidance.
Over the last year, the growth of lithium producers’ shares has outpaced the general market trend.
Shares of Livent (LTHM), which increased by 63% in a year, rose by 29%.
Following Livent’s good report, Cowen analysts improved the company’s stock rating from in line with the market to outperform and raised its target price from $25 to $33.
Livent reported $0.21 earnings per share on $143.5 million in revenue. On average, Wall Street analysts predicted $0.13 profits per share on $140 million in sales.
Livent’s earnings forecast for 2022 has nearly doubled, to roughly $800 million in yearly revenues. This new prognosis is a huge upgrade above earlier estimates, and it well exceeds Wall Street’s expectations of $638 million in annual sales.
Livent Corporation’s stock declined -0.36 percent on Friday, closing at $28.02. The total number of shares exchanged was 3.79 million, up from 2.88 million on average during the previous three months.
The stock fluctuated between $26.91 and $28.77 during the trading session. The earnings per share ratio for the company was 0.26. The stock of LTHM has risen 31.18 percent in the last five sessions and 9.28 percent in the last month but has only gained 14.93 percent year-to-date.