With the lithium story still red-hot, Livent Corp. (LTHM) is about to break out.
In fact, if it can break above prior resistance around $29.58, it could see higher highs. Helping, the company recently posted solid earnings, with a massive guidance hike.
Q1 2022 revenues were up 56% year over year to $143.5 million. GAAP net income jumped from negative $800,000 to $53.2 million. Adjusted net income soared more than 1,000% to $40 million. GAAP EPS jumped from a loss of a penny to a gain of 28 cents. Adjusted EPS was up 950% to 21 cents from two cents year over year.
Guidance sent the stock even higher. It now expects to see 2022 revenue of $755 million to $835 million from prior guidance of $540 million to $600 million. 2022 adjusted EBITDA is now expected to fall in a range of $290 million to $350 million from prior guidance of $160 million to $200 million.
Also, earlier this week, Mizuho analyst Christopher Parkinson raised the firm’s target price to $34 from $26. He noted that better pricing momentum is driving the EBITDA guide increase.