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What's in Store for Century Aluminum (CENX) in Q4 Earnings?
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Century Aluminum Company (CENX - Free Report) is scheduled to report fourth-quarter 2017 results after the closing bell on Feb 22.
The company logged a profit of $20.8 million or 22 cents per share in third-quarter 2017, against a loss of $58.3 million or 67 cents a year ago. The bottom line in the third quarter was boosted by a $5.5 million gain on the settlement associated with retirement benefits for former employees of the Ravenswood facility and a $0.9 million gain related to LME forward sales.
Adjusted earnings of 15 cents per share for the quarter, however, trailed the Zacks Consensus Estimate of 23 cents.
Revenues rose roughly 20% year over year to $400.6 million and surpassed the Zacks Consensus Estimate of $392 million.
Century Aluminium has outperformed the Zacks Consensus Estimate in two of the trailing four quarters while missing in the other two with an average negative earnings surprise of 9.9%.
Shares of Century Aluminum have moved up 49.3% in past six months, outperforming the 7.1% gain of its industry.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Higher shipments and increased value-added product sales boosted Century Aluminium’s revenues in the third quarter. Sustained momentum in value-added products is expected to continue to drive its top line in the to-be-reported quarter. The Zacks Consensus Estimate for revenues for Century Aluminum for the fourth quarter stands at $427 million, reflecting an increase of around 25.6% from the year-ago quarter.
Century Aluminium, in its third-quarter call, said that market fundamentals and demand across key markets in the United States and Europe remained favorable. According to the company, global aluminum demand rose roughly 6% year over year in the third quarter. The company is expected to continue to gain from strong aluminum demand in key regions such as North America, Europe and China in the December quarter.
The company also witnessed higher pricing for commodities such as alumina, aluminum, pitch and petroleum coke and expects to see the impact of each of these prices in fourth-quarter 2017.
Century Aluminium also expects the direction of the metal prices, over the mid-to-longer term, to depend upon China’s commitment to eliminate illegally subsidized overproduction and implement long-term discipline.
High levels of production from China is still affecting the aluminum industry. Chinese production rose 13% year over year in the third quarter. Global aluminum market witnessed modest surplus of roughly 50,000 tons during the first nine months of 2017.
Century Aluminium is also seeing high costs for power and certain key raw materials. For the fourth quarter, the company expects EBITDA impact of higher raw material costs to be roughly $20 million, owing to increased alumina costs and other carbon related key raw materials cost. The forecast includes around $15 million of higher alumina costs.
Earnings Whispers
Our proven model does not conclusively show that Century Aluminum is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as you will see below:
Zacks ESP: Earnings ESP for Century Aluminum is currently pegged at 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 23 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Century Aluminum currently carries a Zacks Rank #3. Though a Zacks Rank #3 increases the predictive power of ESP, a 0.00% ESP makes surprise prediction difficult.
Here are some companies in the basic materials space you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Franco-Nevada Corporation (FNV - Free Report) has an Earnings ESP of +0.46% and sports a Zacks Rank #1.
Ferroglobe PLC (GSM - Free Report) has an Earnings ESP of +61.77% and carries a Zacks Rank #3.
Can Hackers Put Money INTO Your Portfolio?
Earlier this month, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.
Zacks has just released Cybersecurity! An Investor’s Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.
Image: Bigstock
What's in Store for Century Aluminum (CENX) in Q4 Earnings?
Century Aluminum Company (CENX - Free Report) is scheduled to report fourth-quarter 2017 results after the closing bell on Feb 22.
The company logged a profit of $20.8 million or 22 cents per share in third-quarter 2017, against a loss of $58.3 million or 67 cents a year ago. The bottom line in the third quarter was boosted by a $5.5 million gain on the settlement associated with retirement benefits for former employees of the Ravenswood facility and a $0.9 million gain related to LME forward sales.
Adjusted earnings of 15 cents per share for the quarter, however, trailed the Zacks Consensus Estimate of 23 cents.
Revenues rose roughly 20% year over year to $400.6 million and surpassed the Zacks Consensus Estimate of $392 million.
Century Aluminium has outperformed the Zacks Consensus Estimate in two of the trailing four quarters while missing in the other two with an average negative earnings surprise of 9.9%.
Shares of Century Aluminum have moved up 49.3% in past six months, outperforming the 7.1% gain of its industry.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Higher shipments and increased value-added product sales boosted Century Aluminium’s revenues in the third quarter. Sustained momentum in value-added products is expected to continue to drive its top line in the to-be-reported quarter. The Zacks Consensus Estimate for revenues for Century Aluminum for the fourth quarter stands at $427 million, reflecting an increase of around 25.6% from the year-ago quarter.
Century Aluminium, in its third-quarter call, said that market fundamentals and demand across key markets in the United States and Europe remained favorable. According to the company, global aluminum demand rose roughly 6% year over year in the third quarter. The company is expected to continue to gain from strong aluminum demand in key regions such as North America, Europe and China in the December quarter.
The company also witnessed higher pricing for commodities such as alumina, aluminum, pitch and petroleum coke and expects to see the impact of each of these prices in fourth-quarter 2017.
Century Aluminium also expects the direction of the metal prices, over the mid-to-longer term, to depend upon China’s commitment to eliminate illegally subsidized overproduction and implement long-term discipline.
High levels of production from China is still affecting the aluminum industry. Chinese production rose 13% year over year in the third quarter. Global aluminum market witnessed modest surplus of roughly 50,000 tons during the first nine months of 2017.
Century Aluminium is also seeing high costs for power and certain key raw materials. For the fourth quarter, the company expects EBITDA impact of higher raw material costs to be roughly $20 million, owing to increased alumina costs and other carbon related key raw materials cost. The forecast includes around $15 million of higher alumina costs.
Earnings Whispers
Our proven model does not conclusively show that Century Aluminum is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as you will see below:
Zacks ESP: Earnings ESP for Century Aluminum is currently pegged at 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 23 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Century Aluminum currently carries a Zacks Rank #3. Though a Zacks Rank #3 increases the predictive power of ESP, a 0.00% ESP makes surprise prediction difficult.
Century Aluminum Company Price and Consensus
Century Aluminum Company Price and Consensus | Century Aluminum Company Quote
Other Stocks to Consider
Here are some companies in the basic materials space you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Huntsman Corporation (HUN - Free Report) has an Earnings ESP of +3.27% and carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Franco-Nevada Corporation (FNV - Free Report) has an Earnings ESP of +0.46% and sports a Zacks Rank #1.
Ferroglobe PLC (GSM - Free Report) has an Earnings ESP of +61.77% and carries a Zacks Rank #3.
Can Hackers Put Money INTO Your Portfolio?
Earlier this month, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.
Zacks has just released Cybersecurity! An Investor’s Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.
Download the new report now>>