One of the more intriguing movers in today’s market that investors are watching is Meta Materials (NASDAQ:MMAT). Currently, MMAT stock is up approximately 2% on the day, despite some rather bearish news that the company shared yesterday.
Specifically, this high-performance functional materials company announced plans to reschedule its fourth-quarter and full-year 2022 results for later this month. Previously, the company had expected to release the results today. Apparently, this change was made “to allow META the time required to complete the complex accounting analysis required for its Form 10-K filing related to the Next Bridge Hydrocarbons, Inc. share distribution completed on December 14, 2022, and the resulting deconsolidation of the Next Bridge Hydrocarbons, Inc. assets and liabilities.”
That’s a mouthful. Let’s dive into what investors should make of this announcement, given today’s surge in MMAT stock.
MMAT Stock Rises, Despite Rescheduling Earnings Call
Right now, the market appears to be viewing this earnings delay as a nothingburger. Normally, when a company delays a specific filing — especially an earnings release — the market gets jittery. And considering today’s rather negative price action in most sectors, that shouldn’t bode well for MMAT stock.
That said, the company did provide a reasonable rationale for delaying the filing. The company’s de-consolidation of Next Bridge Hydrocarbons assets and liabilities isn’t likely to be an easy accounting exercise. Thus, investors will simply have to wait to see how this all shapes up.
Meta Materials has remained highly volatile this past year and been on a significant downtrend of late. If earnings come out better than expected, however, there may be some significant upside with this name.
That appears to be what the market is pricing in with beaten-down MMAT stock today.
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On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
