AMG tracks worst day in 15 yrs on Q3 miss, another guidance cut

AMG Critical Materials NV

09/11/2023 08:23

** AMG Critical Materials  AMG.AS  shares fall 27% after the
Dutch metallurgical group posted on Wednesday Q3 results below
expectations and cut its EBITDA outlook for 2023 for the second
time this year 
    ** Berenberg flags that Q3 results missed expectations
driven mainly by a top-line miss with lithium prices as a key
driver, which also drove an EBITDA guidance cut
    ** Stock falls to 3-year lows, heading for its biggest
one-day slump in 15 years
    ** AMG now expects FY 2023 EBITDA of $320 million vs
previous already lowered July guidance of $350-380 million
    ** AMG also says it's challenging to provide firm guidance
for 2024; expects 2024 EBITDA of about $200 million
    ** Berenberg says this is well below its bottom-of-consensus
$314 mln (consensus: $354 mln) and reflective of the scenario
that the lithium market (and prices) do not recover
    ** "Overall, this was a weak quarter from AMG, which was not
a major surprise, but EPS was lighter than we expected, and
weakness in lithium prices continues to weigh on the earnings
outlook for the company" - Berenberg
    ** Including Thursday's fall, the stock has dropped by
almost 50% YTD

 (Reporting by Marianna Ciabach-Malinowska)
 ((Marianna.ciabach@tr.com))