Molycorp Earnings: Here’s Why Investors are Selling Shares Now
Molycorp, Inc (NYSE:MCP) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 13.23%.
Molycorp, Inc Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased to $-0.36 in the quarter versus EPS of $-0.03 in the year-earlier quarter.
Revenue: Rose 30.87% to $136.86 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Molycorp, Inc reported adjusted EPS loss of $0.36 per share. By that measure, the company missed the mean analyst estimate of $-0.23. It missed the average revenue estimate of $157.56 million.
Quoting Management: “We are seeing increasingly bullish signals from customers across several segments for product demand, and increased demand will coincide nicely with increased production capacity at Mountain Pass and declining production costs,” said Constantine Karayannopoulos, President and CEO. “As we continue to optimize operations at Mountain Pass, and bring up the chloralkali plant in the second half of 2013, we should be ready to adjust production to meet customer demand and be price competitive with any rare earth producer in the world.”
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