USA Rare Earth (NASDAQ:USAR) Posts Quarterly Earnings Results, Misses Expectations By $0.08 EPS

USA Rare Earth (NASDAQ:USAR) announced its quarterly earnings data on Monday. The company reported ($0.15) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.07) by ($0.08), FiscalAI reports. The company had revenue of $5.82 million during the quarter.

Here are the key takeaways from USA Rare Earth’s conference call:

• Strategic platform expansion advanced: USA Rare Earth announced plans to acquire Serra Verde, invested in heavy rare-earth processor Carester, selected Blacksburg, South Carolina, for a second U.S. magnet and metals facility, and closed its acquisition of Texas Mineral Resources, consolidating Round Top ownership.
• Customer demand is building: The company has more than 100 potential magnet customers, over 20 in qualification, and MOUs and letters of intent covering approximately 2,500 metric tons of annual demand. Production purchase orders are already in hand, with first magnet sales expected by year-end.
• Management expects to benefit from a widening non-China pricing premium amid severe supply shortages, particularly for heavy rare earths. The company has already implemented higher prices, which it expects to flow through in upcoming quarters.
• Second-quarter revenue was approximately $6 million, while operating expenses were about $45 million due partly to M&A, legal, and consulting costs. Adjusted net loss was $33.5 million, or $0.15 per share, and gross margins were pressured by elevated raw-material costs.
• The company ended the quarter with roughly $1.5 billion in cash and remains on schedule for Round Top commercial operations in late 2028, U.S. metal and alloy and magnet capacity targets by 2029, and its Round Top definitive feasibility study by year-end. CEO Barbara Humpton will be succeeded by Thras Moraitis on October 1.

USA Rare Earth Stock Performance

Shares of USAR opened at $18.91 on Wednesday. USA Rare Earth has a one year low of $11.45 and a one year high of $43.98. The stock’s fifty day moving average is $19.27 and its 200-day moving average is $20.52. The firm has a market capitalization of $4.22 billion, a price-to-earnings ratio of -7.78 and a beta of 2.55.

Wall Street Analyst Weigh In

Several research firms have recently commented on USAR. Needham & Company LLC lowered their target price on USA Rare Earth from $39.00 to $33.00 and set a “buy” rating for the company in a report on Wednesday, July 22nd. Cantor Fitzgerald restated an “overweight” rating on shares of USA Rare Earth in a research report on Tuesday. Roth Capital dropped their price objective on shares of USA Rare Earth from $40.00 to $30.00 and set a “buy” rating on the stock in a report on Tuesday, July 21st. Weiss Ratings upgraded shares of USA Rare Earth from a “sell (d-)” rating to a “sell (d+)” rating in a research report on Thursday, May 14th. Finally, Wedbush boosted their target price on shares of USA Rare Earth from $29.00 to $35.00 and gave the company an “outperform” rating in a research note on Tuesday, May 12th. Nine analysts have rated the stock with a Buy rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $35.83.

Insider Transactions at USA Rare Earth

In other USA Rare Earth news, Director Carolyn Trabuco sold 13,000 shares of the firm’s stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $22.77, for a total transaction of $296,010.00. Following the transaction, the director owned 18,783 shares of the company’s stock, valued at approximately $427,688.91. This trade represents a 40.90% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 9.10% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On USA Rare Earth

Hedge funds have recently modified their holdings of the company. NewEdge Advisors LLC boosted its stake in USA Rare Earth by 158.2% during the second quarter. NewEdge Advisors LLC now owns 2,324 shares of the company’s stock valued at $25,000 after buying an additional 1,424 shares in the last quarter. Raymond James Financial Inc. bought a new stake in shares of USA Rare Earth in the 2nd quarter worth approximately $223,000. Lighthouse Investment Partners LLC acquired a new stake in USA Rare Earth during the second quarter valued at approximately $329,000. Bank of America Corp DE boosted its holdings in USA Rare Earth by 465.7% during the second quarter. Bank of America Corp DE now owns 242,726 shares of the company’s stock worth $2,659,000 after buying an additional 199,819 shares in the last quarter. Finally, LMR Partners LLP acquired a new position in USA Rare Earth in the second quarter worth approximately $145,000.

USA Rare Earth Company Profile

USA Rare Earth (NASDAQ: USAR) is a development-stage critical minerals company focused on advancing a fully integrated rare earth element (REE) and lithium project in the United States. Its flagship asset is the Round Top deposit in West Texas, a large, polymetallic concentration of light and heavy rare earth elements, lithium and other co-products. The company seeks to move this asset through resource delineation, pilot-scale processing and eventual commercial production to address growing domestic demand for secure REE supply chains.

In addition to exploration, USA Rare Earth is engineering an on-site separation facility that will utilize dry magnetic separation and hydrometallurgical flowsheets to produce mixed rare earth carbonates.