On August 11, USA Rare Earth Inc. declined 8.35% in pre-market trading, trading at approximately $17.47/share, with turnover of $232,600. The sell-off was triggered by the company's Q2 earnings report, which missed analyst expectations on both revenue and earnings per share.
Specifically, USA Rare Earth Inc. reported Q2 adjusted EPS of -$0.15, missing the consensus estimate of -$0.13 by 25%. Revenue came in at $5.82 million, falling significantly short of the $8.05 million estimate by approximately 28%. Operating losses widened to $46.3 million, driven by continued spending on the Round Top rare earth project, the Oklahoma magnet factory construction, and acquisition integration costs. Despite EPS improving 28.6% year-over-year from -$0.21, the dual miss on key metrics pressured shares. Separately, the company announced its intent to acquire Serra Verde, the only producer outside Asia capable of large-scale production of all four magnetic rare earth elements, and holds approximately $1.53 billion in cash reserves.
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