Li-Cycle Holdings Reports Q3 Losses

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LI-CYCLE($NYSE:LICY): Li-Cycle Holdings reported a GAAP EPS of -$0.16 for Q3, missing analyst estimates by $0.04. Revenue for the quarter came in at -$2M. The company attributed the miss to “challenges associated with the COVID-19 pandemic.”

Earnings

In its earning report of FY2022 Q2, LI-CYCLE earned 18.6M USD in total revenue, lost 203.9M USD in net income. Compared to previous year, 151.4% increase in total revenue, LI-CYCLE’s total revenue reached from 0.8M USD to 18.6M USD in the last 3 years. Despite the company’s impressive growth, it was still not enough to offset the significant losses incurred in the quarter. This is likely due to the high costs associated with setting up and running a battery recycling facility. Hopefully, as the company continues to scale up its operations, it will be able to achieve profitability.

Stock Price

On Wednesday, shares of LI-CYCLE Technologies Inc opened at $7.00 and closed at $6.70, representing a 5.5% drop from the previous day’s closing price of $7.10. LI-CYCLE is a young company that is still in the early stages of commercialization, and some investors may be worried about its ability to scale up its operations to meet the demands of its major new investor. Despite the share price drop, LI-CYCLE remains one of the most promising cleantech companies in Canada, and its technology has the potential to revolutionize the recycling industry. The company’s long-term prospects remain bright, and investors who are patient may be rewarded with significant returns in the years to come.

VI Analysis

Companies that have strong fundamentals are more likely to be successful in the long run. The VI app makes it easy to assess a company’s fundamentals and identify its strengths and weaknesses. According to VI’s Risk Rating, LI-CYCLE is a medium risk investment in terms of financial and business aspects. However, there are some potential risks to be aware of. The company’s business model is reliant on government subsidies, which could be cut in the future. Additionally, the company has a relatively high debt-to-equity ratio, which could put it at risk if interest rates rise or its business performance deteriorates. Overall, LI-CYCLE appears to be a solid company with a strong focus on sustainability. However, investors should be aware of the potential risks involved before making any decisions.

Summary

Li-Cycle Holdings Inc is a Canadian company that recycles lithium-ion batteries. Despite the losses, Li-Cycle is still considered a good investment. The company has a strong hold on the lithium-ion battery recycling market and is working on expanding its operations. The company is also working on developing new technologies to improve its recycling process.