Why Shares of Livent Power Headed Higher Today
The first-quarter financial results Livent (NYSE: LTHM) reported after markets closed Tuesday had investors energized on Wednesday. Not only did it beat analysts' top- and bottom-line estimates, the lithium company upwardly revised its 2023 guidance. Shares rose by as much as 15.5% during the session. As of 2:13 p.m. ET, Livent was still up by 7.7%.
Livent reported a 77% year-over-year sales increase to $253.5 million, a company record for quarterly revenue. Analysts on average had expected the company to report revenue of $233.5 million. At the bottom of the income statement, there was even more to get charged up about -- earnings per share of $0.55, which trounced analysts' consensus estimate of $0.39.
Beyond the company's Q1 performance, its increasingly bullish outlook regarding the remainder of 2023 was a catalyst for the stock's rise Wednesday. Previously, Livent had forecast 2023 revenue would be in the $1 billion to $1.1 billion range, but on Tuesday, management informed investors that it now anticipates 2023 revenue of $1.025 billion to $1.125 billion. In addition, the company raised its 2023 adjusted earnings before interest, taxes, depreciation, and amortization forecast to $530 million to $600 million from the prior forecast of $510 to $580 million.
Source Fool.com
