Shares of Livent Corp. (LTHM) dropped 1.8% in after-hours trading on Thursday, reaching a three-month low. Livent Corp. is a renowned producer of lithium, which is widely used in electric vehicle (EV) batteries.
Revenue Falls Short of Expectations
The company reported second-quarter profit and revenue that missed expectations. Although the volume remained relatively stable, prices were lower and costs were higher during the period. Despite these challenges, net income rose to $90.2 million, or 43 cents per share, compared to $60.0 million, or 31 cents per share, in the prior year.
Revenue Growth and Guidance
Livent Corp.’s revenue grew by 7.8% to $235.8 million. However, this figure fell short of the FactSet consensus of $253.9 million. The company affirmed its full-year revenue guidance range of $1.025 billion to $1.125 billion, which aligns with the FactSet consensus of $1.093 billion.
Industry Challenges and CEO’s Statement
Chief Executive Peter Graves acknowledged the challenges faced by Livent Corp., stating, “As anticipated, we experienced the lagged impact of lower market prices in certain lithium products and end markets, as well as higher operating costs during the quarter.”
Stock Performance
Despite the recent decline, Livent Corp.’s stock has rallied 15.3% year to date, outperforming the S&P 500 index, which has advanced 17.3%.
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