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Piedmont Lithium (PLL) to Report Q1 Earnings: What's in Store?

Piedmont Lithium PLL is anticipated to report a loss per share when it reports first-quarter 2023 results next week.

Q1 Estimates

The Zacks Consensus Estimate for PLL’s first-quarter loss is currently pegged at 44 cents per share. Over the past 30 days, the estimate has widened from the earlier expected loss of 40 cents per share to the current estimate of a loss of 44 cents.

Q4 Results

In the last reported quarter, Piedmont Lithium reported a loss per share of 36 cents. The Zacks Consensus Estimate was pegged at a loss of 37 cents per share. PLL has delivered a negative average surprise of 40.8% in the trailing four quarters.

Piedmont Lithium Inc. Price and EPS Surprise

Piedmont Lithium Inc. price-eps-surprise | Piedmont Lithium Inc. Quote

Factors to Note

Piedmont Lithium is a development stage company focused on building a multi-asset, integrated lithium business which will provide lithium hydroxide to the electric vehicle and battery manufacturing supply chains in the United States.  It is currently developing four key capital projects.
PLL expects an estimated annual lithium hydroxide manufacturing capacity of 60,000 metric tons when fully operational. It aims to start production in 2023 (in Quebec, Canada), then in 2024 (Ghana), 2025 (LHP-2) and 2026 (Carolina Lithium).

The company has not generated revenues yet. Until commercial production is achieved from operations, Piedmont Lithium will continue to incur operating and investing net cash outflows. PLL’s results in the first quarter of 2023 will reflect the exploration and mine development costs it has been incurring. These include costs in resource exploration, evaluation and development during different phases of its development projects.

Exploration costs incurred before the declaration of proven and probable ore reserves, which primarily include exploration, drilling, engineering, metallurgical test work, site-specific reclamation and compensation for employees associated with exploration activities, are also expensed as incurred. It also includes engineering costs attributable to the evaluation of land for future chemical plants and concentrators, development project management costs, feasibility studies and other project expenses that do not qualify for capitalization.

PLL’s first-quarter earnings are also likely to have been impacted by higher general and administrative expenses due to increased professional fees, including legal and accounting services, consulting services and insurance expenses as the company became subject to U.S. public company requirements as part of the Redomiciliation (from Australia to Delaware). Also, employee compensation costs are expected to have contributed to a spike in general and administrative expenses due to the hiring of additional management and support staff. All these factors,in the absence of revenues, are likely to have led to a first-quarter loss for PLL.

What Our Zacks Model Indicates

Our proven model does not conclusively predict an earnings beat for Piedmont Lithium this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.

You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for PLL is 0.00%.

Zacks Rank: The company currently sports a Zacks Rank of 1. You can see the complete list of today's Zacks #1 Rank stocks here.

Price Performance

Piedmont Lithium’s’ shares have fallen 13% in the past year compared with the industry’s fall of 17.9%.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Stocks Poised to Beat Estimates

Here are some Basic Materials stocks, which according to our model, have the right combination of elements to post an earnings beat in their upcoming releases.

Pan American Silver Corp. PAAS, scheduled to release earnings on May 10, has an Earnings ESP of +28.57% and currently carries a Zacks Rank of 2.

The Zacks Consensus Estimate for Pan American Silver’s first-quarter earnings has been revised 66.7% upward in the past 60 days. The consensus estimate for PAAS’ earnings for the first quarter is currently pegged at 5 cents.

B2Gold Corp BTG, scheduled to release first-quarter 2023 earnings on May 9, has an Earnings ESP of +16.67% and has a Zacks Rank of 3.

The consensus estimate for B2Gold’s first-quarter earnings has moved up 20% in the past 60 days. The Zacks Consensus Estimate for BTG’s earnings for the quarter is pegged at 6 cents.

Air Products and Chemicals APD, scheduled to release first-quarter 2023 earnings on May 9, has an Earnings ESP of +2.25% and currently carries a Zacks Rank of 3.

The Zacks Consensus Estimate for Air Products’ first-quarter earnings has been unchanged in the past 60 days. The consensus estimate for APD’s earnings for the first quarter is pegged at $2.64.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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