NEW YORK (TheStreet) -- Molycorp (MCP - Get Report) was falling 3.24% to $5.08 at 12:43 p.m. on Tuesday despite the mining company's fourth-quarter loss per share that narrowly beat analysts' expectations.
The company net loss narrowed to $194.3 million, or 95 cents a share, from $359.6 million, or $2.91 a share, in the same period one year earlier. The 2012 figure included a $258.3 million impairment charge. The adjusted loss per share, excluding items, was 28 cents, narrower than the 45 cents from the same period a year ago. Analysts expected a loss of 29 cents a share, according to Thomson Reuters I/B/E/S.
Revenue fell 8% to $123.8 million for the quarter, while analysts expected $150.63 million.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 270.2% when compared to the same quarter one year ago, falling from -$18.89 million to -$69.93 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Metals & Mining industry and the overall market, MOLYCORP INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to -$15.97 million or 192.89% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The debt-to-equity ratio of 1.06 is relatively high when compared with the industry average, suggesting a need for better debt level management. Even though the debt-to-equity ratio is weak, MCP's quick ratio is somewhat strong at 1.30, demonstrating the ability to handle short-term liquidity needs.
- The share price of MOLYCORP INC has not done very well: it is down 15.87% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- You can view the full analysis from the report here: MCP Ratings Report