MP Materials (NYSE:MP) Stock Jumps 4.9% on Better-Than-Expected Earnings

Key Points

• MP Materials shares rose 4.9% after quarterly earnings beat expectations, reporting EPS of $0.04 versus consensus for a $0.02 loss.
• Revenue climbed 175.7% year over year to $147.66 million, above the $117.37 million estimate; NdPr production also increased 41% to a record level.
• Despite stronger results, the company’s net margin remained negative. MP has qualified to supply General Motors, with commercial magnet deliveries and related revenue expected to begin in Q4 2026.

MP Materials Corp. (NYSE:MP - Get Free Report) shares rose 4.9% during trading on Friday after the company announced better than expected quarterly earnings. The company traded as high as $35.80 and last traded at $35.3790. 8,720,822 shares changed hands during mid-day trading, an increase of 37% from the average daily volume of 6,381,063 shares. The stock had previously closed at $33.74.

The company reported $0.04 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.02) by $0.06. The company had revenue of $147.66 million during the quarter, compared to the consensus estimate of $117.37 million. MP Materials had a negative net margin of 19.85% and a negative return on equity of 1.21%. MP Materials's revenue for the quarter was up 175.7% on a year-over-year basis. During the same quarter last year, the company earned ($0.10) earnings per share.

More MP Materials News

Here are the key news stories impacting MP Materials this week:

• Positive Sentiment: Q3 revenue jumped 175.7% year over year to $147.66 million, topping the $117.37 million consensus estimate. Earnings were $0.04 per share, versus expectations for a loss. The results point to improving operating momentum. MP Materials Reports Third Quarter 2026 Results
• Positive Sentiment: Rare-earth output strengthened, with NdPr production up 41% and at a record level. MP also reported a $1.34 billion cash cushion, supporting its expansion plans. Q3 Earnings Call Highlights
• Positive Sentiment: MP completed the qualification process for General Motors, with commercial magnet deliveries and related revenue expected to begin in Q4 2026. This milestone could open a higher-value growth channel. MP Materials Reports Third Quarter 2026 Results
• Neutral Sentiment: China’s pause on rare-earth export controls is scheduled to expire November 10. The implications for supply and prices remain uncertain, though U.S. efforts to build domestic supply chains may benefit MP as an established producer. China's Rare-Earth Export Pause Expires Nov. 10
• Negative Sentiment: Despite the earnings beat, the company’s reported net margin remains negative. Investors will likely look for sustained profitability and successful execution of the planned GM deliveries.

Wall Street Analyst Weigh In

MP has been the subject of a number of recent analyst reports. DA Davidson reaffirmed a "buy" rating and set a $82.00 price target on shares of MP Materials in a report on Monday, August 24th. Jefferies Financial Group reaffirmed a "buy" rating on shares of MP Materials in a research note on Tuesday, September 8th. Deutsche Bank Aktiengesellschaft cut their price objective on shares of MP Materials from $70.00 to $61.00 and set a "buy" rating on the stock in a report on Thursday, July 9th. Freedom Broker initiated coverage on shares of MP Materials in a research report on Wednesday, September 16th. They issued a "hold" rating and a $57.00 price objective for the company. Finally, Barclays decreased their price objective on shares of MP Materials from $69.00 to $65.00 and set an "overweight" rating for the company in a research report on Thursday, July 16th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, one has given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $71.92.

Institutional Trading of MP Materials

A number of hedge funds have recently made changes to their positions in MP. Toth Financial Advisory Corp grew its position in shares of MP Materials by 73.3% during the second quarter. Toth Financial Advisory Corp now owns 520 shares of the company's stock worth $29,000 after acquiring an additional 220 shares during the last quarter. Wedmont Private Capital increased its holdings in shares of MP Materials by 2.0% in the 3rd quarter. Wedmont Private Capital now owns 11,866 shares of the company's stock worth $547,000 after acquiring an additional 234 shares during the period. Allworth Financial LP increased its holdings in shares of MP Materials by 4.5% in the 2nd quarter. Allworth Financial LP now owns 5,679 shares of the company's stock worth $318,000 after acquiring an additional 243 shares during the period. NFSG Corp increased its holdings in shares of MP Materials by 5.0% in the 1st quarter. NFSG Corp now owns 5,387 shares of the company's stock worth $260,000 after acquiring an additional 255 shares during the period. Finally, Putney Financial Group LLC lifted its position in MP Materials by 4.4% in the 3rd quarter. Putney Financial Group LLC now owns 6,123 shares of the company's stock valued at $290,000 after purchasing an additional 257 shares during the last quarter. Institutional investors and hedge funds own 52.55% of the company's stock.

MP Materials Stock Performance

The stock has a market capitalization of $6.30 billion, a P/E ratio of -104.05 and a beta of 2.05. The company's 50-day moving average is $46.13 and its two-hundred day moving average is $54.60. The company has a current ratio of 9.51, a quick ratio of 8.56 and a debt-to-equity ratio of 0.48.

About MP Materials

MP Materials Corp. is a rare earth materials company focused on restoring and expanding a fully integrated rare earth supply chain in the United States. The company owns and operates the Mountain Pass rare earth mine and processing facility in California, one of the largest rare earth production sites in the Western Hemisphere.

MP Materials primarily produces rare earth concentrate containing neodymium and praseodymium, elements used in high-strength permanent magnets. These magnets are important components in electric vehicles, wind turbines, robotics, defense systems, and other advanced technologies.

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