A month has gone by since the last earnings report for Century Aluminum (CENX). Shares have added about 11.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Century due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Century Aluminum’s Q1 Earnings & Sales Beat Estimates
Century Aluminum incurred a first-quarter 2023 loss of 42 cents per share against the year-ago quarter's earnings of 18 cents.
Barring one-time items, the loss per share was 11 cents in the reported quarter, narrower than the Zacks Consensus Estimate of a loss of 13 cents. The bottom line was particularly affected by the unrealized losses that the company recorded on derivative instruments. Curtailment costs relating to the Hawesville plant also hurt the results.
Revenues and Shipments
The company generated net sales of $552.4 million in the reported quarter, down around 26.7% year over year. The figure beat the Zacks Consensus Estimate of $525.9 million.
Primary aluminum shipments were 181,165 tons, down around 14.3% year over year. Shipments rose 6.9% sequentially.
At the end of the quarter, the company had cash and cash equivalents of $30.4 million, up 14.3% year over year.
Net cash used by operating activities was $0.2 million in the quarter against net cash provided of $37.4 million in the year-ago period.
Century Aluminum expects its adjusted EBITDA in the second quarter to be in the range of $25-$30 million, factoring in improved power and input costs along with break-even or better Jamalco performance.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
The consensus estimate has shifted -11.11% due to these changes.
Currently, Century has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Century has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Century is part of the Zacks Metal Products - Procurement and Fabrication industry. Over the past month, Timken (TKR), a stock from the same industry, has gained 6.9%. The company reported its results for the quarter ended March 2023 more than a month ago.
Timken reported revenues of $1.26 billion in the last reported quarter, representing a year-over-year change of +12.3%. EPS of $2.09 for the same period compares with $1.61 a year ago.
For the current quarter, Timken is expected to post earnings of $2.05 per share, indicating a change of +22.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.4% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Timken. Also, the stock has a VGM Score of B.
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