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Livent stock drops more than 15% on lowered forecast

Livent Corp. (LTHM) shares dropped in the extended session Tuesday after the lithium-products producer cut its outlook. Livent shares fell 16% after hours, following a 3% rise to close at $8.67 in the regular session. The company forecast adjusted fiscal fourth-quarter earnings of 4 cents to 6 cents a share on revenue of $75 million to $80 million, and 40 cents to 42 cents a share on revenue of $385 million to $390 million for the year. Analysts surveyed by FactSet had forecast fourth-quarter earnings of 9 cents a share on revenue of $91.2 million based on Livent's previous outlook of 8 cents to 11 cents a share on revenue of $90 million to $100 million, according to FactSet. Analysts also expected full-year results of 46 cents a share on revenue of $405.8 million. "Compared to earlier guidance, fourth quarter performance was negatively impacted by lower than forecasted realized pricing and by reduced lithium hydroxide volumes due to delayed customer orders," the company said in a statement. "Lower pricing is expected to continue through 2020, with average realized price for lithium hydroxide in 2020 anticipated to be low-to-mid-teens percent lower than 2019." The company launched its initial public offering in October 2018 (link) and shares have struggled to trade at or above their IPO price of $17 ever since.

-Wallace Witkowski; 415-439-6400;


(END) Dow Jones Newswires

01-07-20 1720ET

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