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Why United States Antimony Stock Is Plummeting This Week
Key Points
U.S. Antimony's second-quarter report arrived with sales that came in significantly below the average Wall Street target.
The company issued a huge reduction for its full-year sales guidance.
Prices for antimony have come down a lot, and the company has also seen shifts in contract timing.
United States Antimony (NYSE: UAMY) stock is getting crushed this week. Heading into Friday's market open, the antimony mining specialist's share price had declined by 22% from its level at the end of the previous week's market close.
U.S. Antimony released its second-quarter results after the market closed on Tuesday, and the company's sales came in far below Wall Street's expectations. Adding to bearish pressures, management also issued a dramatic reduction for this year's full-year sales guidance.
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Sales were softer than anticipated in Q2
In its second-quarter report, U.S. Antimony announced net income of $0.1 million on sales of $7.93 million. Revenue declined nearly 25% year over year and missed the average analyst estimate by roughly $13.8 million. The company posted an operating loss of $7 million compared to a break-even result in the prior-year quarter, but accounting contributions from the revaluing of equity positions and interest income allowed the business to record positive net income in this year's second quarter.
U.S. Antimony issued a drastic cut for its sales forecast
While U.S. Antimony had previously guided its full-year sales to come in at roughly $125 million, the company cut its revenue forecast for the year to between $60 million and $75 million. The average Wall Street target had called for the business to record sales of approximately $115.3 million.
U.S. Antimony's initial sales guidance had been based on the spot price for antimony being above $28 per pound near the end of 2025. The company also pointed to the timing of some antimony metal ingot deliveries and shifts in government contract timing as reasons for the lowered guidance.
While the decline in antimony pricing presents a near-term performance headwind, investors may be overreacting to what ultimately amounts to the kind of uneven revenue recognition that can be common among smaller mining companies. The company is one of the only U.S.-based companies sourcing antimony, and securing domestic access to critical minerals will likely continue to be an important priority for the country.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.