GSM - Ferroglobe shares surge 20% after crushing Q4 earnings estimates

Ferroglobe ( NASDAQ: GSM ) +21% in early trading Thursday after easily beating estimates for Q4 adjusted earnings and introducing guidance for FY 2023 adjusted EBITDA of $290M.

Q4 adjusted EBITDA totaled $130M, down 30% Q/Q but up 52% Y/Y, and Q4 adjusted EBITDA margins of 29% were below 31% in Q3 and 15% Q4 2021.

Q4 net debt declined to a record low $137M from $194M in Q3 and $397M in the year-earlier quarter.

FY 2022 adjusted EBITDA skyrocketed 380% Y/Y to $860M and revenues surged 46% to $2.6B, both company records.

profit that beat estimates and said adjusted Ebitda increased 52% from the year-earlier period

B. Riley analyst Lucas Pipes said Ferroglobe's ( GSM ) Q4 adjusted EBITDA of $130M was "handsomely above" his estimate of $92.9M, Bloomberg reported.

"Our strong performance was the result of strong prices and demand early in the year followed by a weaker environment in the second half, driven by sluggish activity in our end markets," CEO Marco Levi said.

"We expect the battery market for electric vehicles and the solar market presents an extraordinary opportunity, driven by the need for high purity silicon," Levi said, adding the company is partnering with battery developers and recently started production, "albeit at low volumes."

Ferroglobe ( GSM ) shares have gained 42% so far this year but fell 30% during the past 12 months .

For further details see: