08:37 AM EDT, 05/10/2024 (MT Newswires) -- Neo Performance Materials ( NOPMF ) on Friday said it swung to an adjusted profit in the first quarter, but the rare-earths and magnets producer missed earnings expectations.

The adjusted profit, which excludes most one-time items, rose to US$0.04 million, or US$0.01 per share, up from an adjusted loss of US$9.0 million, or US$0.19, in the year-prior quarter. The company was expected to report an adjusted profit of US$0.04 per share, according to the consensus estimate of analysts polled by Capital IQ.

Revenue fell 9.9% to US$122.1 million from US$135.5 million, while adjusted EBITDA rose to US$10.8 million from US$0.8 million. The company said the drop in its sales came on weaker prices for rare earths and low demand for magnets.

"Despite continued pressure on rare earth prices and softer magnetic demand which contributed to lower revenue, we generated improved gross profit and improved adjusted EBITDA on both a sequential and year over year basis," Chief Executive Rahim Suleman said in a release.

Neo confirmed expectations for a double-digit rise in 2024 adjusted EBITDA.

The company's shares, which closed up $0.08 to $5.81 Thursday on the Toronto Stock Exchange, traded 2.2% higher at US$4.27 in pre-market U.S. trading.