LGO Earnings Prediction
The chart below shows how LGO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, LGO sees a +2.57% change in stock price 10 days leading up to the earnings, and a -2.99% change 10 days following the report. On the earnings day itself, the stock moves by -1.53%. This data can give you a slight idea of what to expect for the next quarter's release.
LGO Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
29.91M
-32.01%
4.72%
Gross Margin
13.47%
282.67%
-151.87%
Operating Margin
-16.59%
-28.34%
-66.73%
Net Margin
-33.73%
24.83%
-33.48%
EPS
-0.15
-16.67%
-31.82%
No Data Available
LGO Earnings Analysis
Largo Inc. Common Shares Corporation (LGO.O) Earnings Conference Call
Positive
Record Vanadium Production Increase: 1. Record Vanadium Production: Largo achieved its highest quarterly vanadium production in seven quarters, producing 3,072 tonnes, which is a 42% increase compared to Q3 2023.
Cost Management Success: 2. Significant Cost Reductions: The company reduced its operating costs by 31% from $44 million in Q3 2023 to $29.5 million in Q3 2024, demonstrating effective cost management.
V2O5 Recovery Improvement: 3. Improved Recovery Rates: The global V2O5 recovery rate improved to 81.1%, up from 76.9% in the previous year, indicating enhanced operational efficiency.
Ilmenite Production Surge: 4. Increased Ilmenite Production: Ilmenite production reached 16,383 tonnes in Q3, marking a 90% increase over the previous quarter, contributing to revenue diversification.
Cash Reserves and Flexibility: 5. Strong Cash Position: At the end of Q3, Largo reported a cash balance of $30.4 million and a net working capital surplus of $46.7 million, ensuring financial flexibility for future operations.
Negative
Revenue Decline Analysis: 1. Declining Revenue: Largo reported revenues of $29.9 million in Q3 2024, a decrease from $32.5 million in Q3 2023, primarily due to lower vanadium prices and reduced sales volumes.
Net Loss Improvement: 2. Net Loss: The company experienced a net loss of $10.1 million in Q3 2024, although this was an improvement from a net loss of $11.9 million in the same quarter last year, indicating ongoing financial challenges.
Sales Volume Decline: 3. Decreased Sales Volume: V2O5 equivalent sales fell by 18% year-over-year to 1,961 tonnes in Q3 2024, driven by softer demand in key markets, particularly Asia and Europe.
Price Decline in V2O5: 4. Lower Average Prices: The average benchmark price per pound of V2O5 in Europe dropped to $5.71 in Q3 2024, down from $8.03 in Q3 2023, reflecting ongoing market challenges and price pressures.
Production and Cost Outlook: 5. Expected Production Impact: Q4 production is anticipated to be lower due to annual kiln maintenance, which will also lead to higher operating costs for the quarter.
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LGO Earning Call Sentiment
Largo Inc. (LGO) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
LGO.O
-3.83%Positive
The earnings call highlights several challenges, including decreased revenue, a net loss, and operational risks due to maintenance. Although a new vanadium supply agreement offers future financial benefits, current market conditions and declining vanadium prices create a negative outlook. The Q&A reveals uncertainty in demand and pricing, with management unable to provide clear guidance. Despite cost reductions, the overall sentiment is negative due to financial struggles and market headwinds.
