Earnings Preview: Molycorp

| About: Molycorp, Inc. (MCPIQ)

Molycorp, Inc. (MCP) is scheduled to report its Q2 2012 results on August 2, 2012, after the bell. The Street expects EPS and revenue of $0.08 and $115.56M, respectively.

In this article, I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from MCP and the news from its closest competitors.

Molycorp, Inc. Revenue and Net Income History

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last two quarters. In the last quarter, it reported $0.18 EPS, beating analyst estimates of $0.13.

Molycorp, Inc. EPS Historical Results vs Estimates

The consensus EPS estimate is $0.08 based on 4 analysts' estimates, down from $0.52 a year ago. Revenue estimates are $115.56M, down from $99.62M a year ago. The median target price by analysts for the stock is $28.00.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On February 2, 2012, Dahlman Rose reiterated Buy rating for the company.

Latest News

  • On June 12, 2012, Molycorp Inc announced that its acquisition of Canadian-based Neo Material Technologies Inc. has officially closed. Financial terms were not mentioned.
  • On May 18, 2012, Molycorp Inc announced the pricing of $650 million aggregate principal amount of 10.000% senior secured notes due 2020 in an offering exempt from the registration requirements of the Securities Act of 1933.
  • On May 14, 2012, Molycorp Inc announced that it intends to offer to sell, subject to market and other conditions, $650 million aggregate principal amount of senior secured notes in an offering exempt from the registration requirements of the Securities Act of 1933.
  • On May 11, 2012, Molycorp Inc announced that it is reaffirming fiscal 2012 production guidance range of 8,000 to 10,000 metric tons of REO equivalent products across all of operating segments this year.
  • On April 3, 2012, Levi & Korsinsky announced that a class action lawsuit has been commenced in the United States District Court for the District of Colorado on behalf of investors who purchased Molycorp, Inc. stock between March 9, 2011 and November 10, 2011 (the Class Period).
  • On March 12, 2012, Molycorp Inc announced the closing of its previously announced placement of 12.5 million shares of Molycorp common stock with Molibdenos y Metales S.A. (Molymet), for approximately $390 million.
  • On March 9, 2012, Molycorp, Inc. (Molycorp) and Neo Material Technologies Inc. (Neo Materials or Neo) announced the signing of a definitive agreement under which Molycorp will acquire Neo Materials for approximately CDN $1.3 billion.
  • On March 8, 2012, Shareholder Rights Law Firm Johnson & Weaver, LLP announced it is investigating whether certain officers and directors of Molycorp, Inc. engaged in a pump-and-dump scheme in breach of their fiduciary duties and in violation of United States securities laws.
  • On March 8, 2012, Harwood Feffer LLP announced that a class action suit was filed in the United States District Court for the District of Colorado against Molycorp, Inc. (Molycorp), on behalf of purchasers of Molycorp stock between March 9, 2011 and November 10, 2011 (Class Period).
  • On March 6, 2012, Ryan & Maniskas, LLP announced that a class action lawsuit has been filed in United States District Court for the District of Colorado on behalf of purchasers of Molycorp, Inc. (Molycorp) common stock during the period between March 9, 2011 and November 10, 2011, (Class Period).
  • On February 18, 2012, Faruqi & Faruqi, LLP, a national securities law firm, reminds investors of the impending lead plaintiff deadline for the class action lawsuit against Molycorp, Inc. The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that Molycorp's efforts to expand the Company's Mountain Pass mine were behind schedule; the Company would fail to reach projected rare earth oxide production rates by the end of calendar year 2012 or 2013; and end-user customers have been reducing their demand for Molycorp's products as prices for rare earth elements have increased.
  • On February 14, 2012, Brower Piven announced that a class action lawsuit has been commenced in the United States District Court for the District of Colorado on behalf of purchasers of the common stock of Molycorp, Inc. during the period between March 9, 2011 and November 10, 2011, inclusive (Class Period).
  • On February 11, 2012, The Shuman Law Firm announced that a lawsuit seeking class action status has been filed in the U.S. District Court for the District of Colorado on behalf of purchasers of the common stock of Molycorp, Inc. between March 9, 2011, and November 10, 2011, inclusive (Class Period).
  • On February 9, 2012, The Briscoe Law Firm and Powers Taylor, LLP announced that the firms are investigating legal claims against the officers and Board of Directors of Molycorp, Inc. related to potential securities violations between March 9, 2011, and November 10, 2011 (Class Period).
  • On February 8, 2012, Holzer Holzer & Fistel, LLC announced that it is investigating potential breaches of fiduciary duty by certain officers and directors of Molycorp Inc.. On February 3, 2012, a class action lawsuit was filed in the United States District Court for the District of Colorado alleging that Molycorp violated the federal securities laws between March 9, 2010 and November 10, 2011 (Class Period).
  • On February 8, 2012, Dyer & Berens LLP announced that it has filed a class action lawsuit in the United States District Court for the District of Colorado, Civil Action No. 12-cv-00292-WJM, on behalf of all persons who purchased or otherwise acquired Molycorp, Inc. common stock between March 9, 2011 and November 10, 2011, inclusive (the Class Period).
  • On February 7, 2012, Faruqi & Faruqi, LLP, a national securities law firm, announced that it is investigating potential securities fraud at Molycorp, Inc. (Molycorp). The investigation focuses on whether Molycorp and its executives violated federal securities laws by failing to disclose that Molycorp's efforts to expand Molycorp's Mountain Pass mine were behind schedule; Molycorp would fail to reach projected rare earth oxide production rates by the end of calendar year 2012 or 2013; and end-user customers have been reducing their demand for Molycorp's products as prices for rare earth elements have increased.
  • On February 7, 2012, Izard Nobel LLP announced that a lawsuit seeking class action status has been filed in the United States District Court for the District of Colorado on behalf of purchasers of the common stock of Molycorp, Inc. ("Molycorp" or the "Company") between March 9, 2011 and November 10, 2011, inclusive (the "Class Period").
  • On February 6, 2012, Levi & Korsinsky announced that a class action lawsuit has been commenced in the United States District Court for the District of Colorado on behalf of investors who purchased Molycorp, Inc. stock between March 9, 2011 and November 10, 2011 (Class Period).
  • On February 4, 2012, Robbins Geller Rudman & Dowd LLP announced that a class action has been commenced in the United States District Court for the District of Colorado on behalf of purchasers of Molycorp, Inc. (Molycorp) common stock during the period between March 9, 2011 and November 10, 2011 (Class Period).
  • On February 2, 2012, Molycorp Inc announced that its Board of Directors has elected to declare a cash dividend on outstanding shares of its 5.50% Series A mandatory convertible preferred stock in an amount equal to $1.375 per share.
  • On February 1, 2012, Molibdenos y Metales SA announced that it has reached an agreement to acquire 12,500,000 shares in Molycorp Inc, which represents a 13% stake, at a value of USD 31.218 per share, reaching the total amount of USD 390,225,000.

Technical Overview


The stock has a market capitalization of $1.68B and is currently trading at $17.93 with a 52-week range of $16.35-$66.62. The stock's year-to-date performance has been -27.52%. It is currently trading below 20, 50 and 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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Tagged: , Industrial Metals & Minerals, Earnings
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