What's in the Cards for Lithium Americas (LAC) Q3 Earnings?

Lithium Americas Corp. LAC is expected to release third-quarter 2020 results on Nov 10.

The Vancouver, Canada-based resource company delivered an earnings surprise of 14.3% in the last reported quarter.

The company’s shares have surged 215.4% year to date compared with the industry’s 1% fall.




Let’s see how things are shaping up for this announcement.

Factors to Consider

Lithium Americas is yet to generate significant revenues from operations. It remains focused on advancing two significant lithium projects — the Cauchari-Olaroz lithium brine project in Argentina and the Thacker Pass project (a sedimentary-based lithium property) in Nevada. Cauchari-Olaroz is in the development phase while Thacker Pass is in the exploration stage.

At the end of the second quarter of 2020, Cauchari-Olaroz project was 47% complete. The fully-owned Thacker Pass project is on track to obtain major construction permits by the end of first-quarter 2021. The company is advancing engineering work and mine plan design for Thacker Pass. Lithium Americas remains committed to advance these projects to production to address the rising global demand for lithium.

The company saw higher exploration expenses in second-quarter 2020 and first-half 2020 on a year over year basis. Exploration expenses for both periods include costs related to the Thacker Pass project. The increase is mainly attributable to expenses related to the definitive feasibility study incurred in the second quarter and timing and scheduling of permitting and other costs related to Thacker Pass. Exploration costs associated with Thacker Pass are likely to have affected the company’s bottom line in the third quarter.


Lithium Americas Corp. Price and EPS Surprise


Lithium Americas Corp. Price and EPS Surprise

Lithium Americas Corp. price-eps-surprise | Lithium Americas Corp. Quote


Zacks Model

Our proven model does not conclusively predict an earnings beat for Lithium Americas this season. 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. But that’s not the case here.

Earnings ESP: Earnings ESP for Lithium Americas is 0.00%. The Zacks Consensus Estimate for earnings for the third quarter is currently pegged at a loss of 10 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Lithium Americas currently carries a Zacks Rank #5 (Strong Sell).

Stocks That Warrant a Look

Here are some companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:

Magna International Inc. MGA, scheduled to release earnings on Nov 6, has an Earnings ESP of +1.92% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cabot Corporation CBT, scheduled to release earnings on Nov 23, has an Earnings ESP of +26.44% and carries a Zacks Rank #3.

Deere & Company DE, scheduled to release earnings on Nov 25, has an Earnings ESP of +9.76% and carries a Zacks Rank #3.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deere Company (DE): Free Stock Analysis Report
Magna International Inc. (MGA): Free Stock Analysis Report
Cabot Corporation (CBT): Free Stock Analysis Report
Lithium Americas Corp. (LAC): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.