Why Livent Stock Is Surging After Hours

Shares of lithium producer Livent Corp LTHM are trading higher in Tuesday's after-hours session after the company reported better-than-expected financial results and raised its full-year 2023 guidance.

What Happened: Livent said first-quarter revenue increased 77% year-over-year to $253.5 million, which beat consensus estimates of $233.48 million. The company reported earnings of 60 cents per share, which beat estimates of 39 cents per share, according to Benzinga Pro.

Livent highlighted an extension of its existing supply agreement with BMW Group. The contract will now run through the end of 2028.

Nemaska Lithium also appointed the company to engage in sales and marketing efforts on its behalf. Livent anticipates Nemaska to enter into its first customer agreements this year.

"Livent achieved record revenue and profitability in the first quarter driven by higher realized lithium pricing and strong demand from our customers," said Paul Graves, president and CEO of Livent. 

"We continue to expect strong financial performance in 2023 supported by pricing visibility from existing customer contracts."

Livent raised its 2023 revenue guidance from a range of $1 billion to $1.1 billion to a range of $1.025 billion to $1.125 billion versus estimates of $1.07 billion. The company also raised its adjusted EBITDA guidance from $510 million to $580 million to $530 million to $600 million. 

See Also: Starbucks Q2 Earnings Brew: Investors Sip On EPS Beat, Revenue Growth As Shares Cool Off After Hours

LTHM Price Action: Livent shares were up 11.8% after hours at $23.50 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Livent.