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Century Aluminum (CENX) Tops Q3 Earnings & Sales Estimates
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Century Aluminum Company (CENX - Free Report) reported net loss of $20.3 million or 23 cents per share in third-quarter 2018, against net income of $20.8 million or 22 cents in the year-ago quarter.
Results in the reported quarter were negatively impacted by $16.9 million from equipment failure at Sebree, $1.7 million related to Sebree labor deal signing bonus and $9.2 million associated with inventory adjustments. Nevertheless, results were favorably impacted by $4.5 million from the extinguishment of legacy contractual obligations associated with the curtailment of the Helguvik project and $0.7 million associated with the Hawesville restart project.
Barring one-time items, adjusted earnings came in at 2 cents per share in the quarter, which surpassed the Zacks Consensus Estimate of a penny.
Century Aluminum Company Price, Consensus and EPS Surprise
The company registered revenues of $481.8 million in the reported quarter, up around 20.3% year over year. The figure beat the Zacks Consensus Estimate of $469.1 million. Shipments of primary aluminum in the quarter were 182,926 tons, down 1.1% from 184,974 tons shipped in the year-ago quarter.
Financials
As of Sep 30, 2018, the company had cash and cash equivalents of $73.4 million compared with $174.2 million in the year-ago period. Net cash used in operating activities was $59 million for the first nine months.
Outlook
Century Aluminum stated that downstream demand continues to depict strength and the trend is likely to continue moving ahead. Primary aluminum inventories across the globe have declined as projections call for a production deficit of roughly 2 million metric tons this year, per the company. Delivery and product premiums remain firm in the United States, supported partly by the business-friendly policies taken by the U.S. administration.
The company believes that it is now witnessing the end-phase of the difficult conditions that have impacted the alumina sector during 2018. It expects the alumina market to be well supplied and prices to return to historical norms, considering the resolution of these issues.
Price Performance
Century Aluminum’s shares have lost 28.2% in the past three months compared with the industry’s 20.4% decline.
Zacks Rank & Key Picks
Century Aluminum currently carries a Zacks Rank #4 (Sell).
Tetra Tech has a long-term earnings growth rate of 14%. The stock has rallied 31.2% in a year’s time.
Donaldson Company has a long-term earnings growth rate of 11.5%. Its shares have increased 4.6% in the past year.
Enersys has a long-term earnings growth rate of 10%. The company’s shares have gained 5.3% in the past year.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Century Aluminum (CENX) Tops Q3 Earnings & Sales Estimates
Century Aluminum Company (CENX - Free Report) reported net loss of $20.3 million or 23 cents per share in third-quarter 2018, against net income of $20.8 million or 22 cents in the year-ago quarter.
Results in the reported quarter were negatively impacted by $16.9 million from equipment failure at Sebree, $1.7 million related to Sebree labor deal signing bonus and $9.2 million associated with inventory adjustments. Nevertheless, results were favorably impacted by $4.5 million from the extinguishment of legacy contractual obligations associated with the curtailment of the Helguvik project and $0.7 million associated with the Hawesville restart project.
Barring one-time items, adjusted earnings came in at 2 cents per share in the quarter, which surpassed the Zacks Consensus Estimate of a penny.
Century Aluminum Company Price, Consensus and EPS Surprise
Century Aluminum Company Price, Consensus and EPS Surprise | Century Aluminum Company Quote
Revenues and Shipments
The company registered revenues of $481.8 million in the reported quarter, up around 20.3% year over year. The figure beat the Zacks Consensus Estimate of $469.1 million. Shipments of primary aluminum in the quarter were 182,926 tons, down 1.1% from 184,974 tons shipped in the year-ago quarter.
Financials
As of Sep 30, 2018, the company had cash and cash equivalents of $73.4 million compared with $174.2 million in the year-ago period. Net cash used in operating activities was $59 million for the first nine months.
Outlook
Century Aluminum stated that downstream demand continues to depict strength and the trend is likely to continue moving ahead. Primary aluminum inventories across the globe have declined as projections call for a production deficit of roughly 2 million metric tons this year, per the company. Delivery and product premiums remain firm in the United States, supported partly by the business-friendly policies taken by the U.S. administration.
The company believes that it is now witnessing the end-phase of the difficult conditions that have impacted the alumina sector during 2018. It expects the alumina market to be well supplied and prices to return to historical norms, considering the resolution of these issues.
Price Performance
Century Aluminum’s shares have lost 28.2% in the past three months compared with the industry’s 20.4% decline.
Zacks Rank & Key Picks
Century Aluminum currently carries a Zacks Rank #4 (Sell).
A few better-ranked stocks in the same sector include Tetra Tech, Inc. (TTEK - Free Report) , Donaldson Company, Inc. (DCI - Free Report) and Enersys (ENS - Free Report) . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Tetra Tech has a long-term earnings growth rate of 14%. The stock has rallied 31.2% in a year’s time.
Donaldson Company has a long-term earnings growth rate of 11.5%. Its shares have increased 4.6% in the past year.
Enersys has a long-term earnings growth rate of 10%. The company’s shares have gained 5.3% in the past year.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>