Ferroglobe (GSM - Free Report) reported adjusted earnings per share of 64 cents in third-quarter 2022, which missed the Zacks Consensus Estimate of 68 cents. The company had reported a loss of 36 cents per share in the prior-year quarter. The cost cutting initiatives implemented by the company over the past few years led to improved performance in earnings in the quarter.
Including one-time items, the company reported earnings of 52 cents per share in the third quarter against the loss of 54 cents in the year-ago quarter.
GSM’s revenues surged 38% year over year to $593 million in the quarter under review. However, the top line missed the Zacks Consensus Estimate of $695 million.
Silicon metal revenue in the third quarter was $263.8 million, up 73.3% from the prior-year’s third quarter. The average realized selling price rose 111.6% while total shipments decreased by 18%, on a year-over-year basis.
Silicon-based alloy revenue in the third quarter was $179.0 million, up 61% year over year. The average realized selling price increased 83.5% year over year and total shipments of silicon-based alloys decreased 12.3% from the third quarter of 2021.
Manganese-based alloy revenue in the third quarter was $97.5 million, down 19% from the last year’s comparable quarter. The average realized selling price rose 0.6% year over year and total shipments decreased 19.5%.
Operational Update
Raw materials and energy consumption for production was $285 million in the third quarter of 2022, down 3.4% year over year.
Operating profit was $154 million in the quarter, a solid 1,271% rise from $11.3 million in the prior-year quarter. Adjusted EBITDA was $185.3 million compared with $37.6 million in the year-ago quarter. The adjusted EBITDA margin was 31.2% in the quarter under review compared with 8.8% in the prior year’s third quarter.
Financial Position
Ferroglobe ended the third quarter of 2022 with $237 million of cash in hand, down from the $306.5 million at end of the second quarter of 2022. Cash flow from operations during the quarter was $55 million. During the quarter the company redeemed $60 million of its 9% super senior secured notes. This action has lowered its annual interest expense by over $5 million.
Price Performance
Ferroglobe’s shares have declined 5.2% over the past year, compared with the industry’s fall of 1.2%.
Zacks Rank & Stocks to Consider
Ferroglobe currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) , Commercial Metals Company (CMC - Free Report) and Reliance Steel & Aluminum Co. (RS - Free Report) . While SQM and CMC sport a Zacks Rank #1 (Strong Buy), RS carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sociedad has a projected earnings growth rate of 538.1% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 1.2% upward in the past 60 days.
Sociedad has a trailing four-quarter earnings surprise of roughly 27.2%. SQM has rallied around 60% in a year.
The Zacks Consensus Estimate for CMC's current-year earnings has been revised 3.8% upward in the past 60 days. Commercial Metals’ earnings beat the Zacks Consensus Estimate in each of the last four quarters.
CMC has a trailing four-quarter earnings surprise of roughly 19.7%, on average. The company’s shares have gained around 38% in a year.
Reliance Steel has a projected earnings growth rate of 29.7% for the current year. The Zacks Consensus Estimate for RS's current-year earnings has been revised 0.1% upward in the past 60 days.
Reliance Steel’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 13.6%, on average. RS has gained around 23% in a year.
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Ferroglobe (GSM - Free Report) reported adjusted earnings per share of 64 cents in third-quarter 2022, which missed the Zacks Consensus Estimate of 68 cents. The company had reported a loss of 36 cents per share in the prior-year quarter. The cost cutting initiatives implemented by the company over the past few years led to improved performance in earnings in the quarter.
Including one-time items, the company reported earnings of 52 cents per share in the third quarter against the loss of 54 cents in the year-ago quarter.
GSM’s revenues surged 38% year over year to $593 million in the quarter under review. However, the top line missed the Zacks Consensus Estimate of $695 million.
Silicon metal revenue in the third quarter was $263.8 million, up 73.3% from the prior-year’s third quarter. The average realized selling price rose 111.6% while total shipments decreased by 18%, on a year-over-year basis.
Silicon-based alloy revenue in the third quarter was $179.0 million, up 61% year over year. The average realized selling price increased 83.5% year over year and total shipments of silicon-based alloys decreased 12.3% from the third quarter of 2021.
Manganese-based alloy revenue in the third quarter was $97.5 million, down 19% from the last year’s comparable quarter. The average realized selling price rose 0.6% year over year and total shipments decreased 19.5%.
Operational Update
Raw materials and energy consumption for production was $285 million in the third quarter of 2022, down 3.4% year over year.
Operating profit was $154 million in the quarter, a solid 1,271% rise from $11.3 million in the prior-year quarter. Adjusted EBITDA was $185.3 million compared with $37.6 million in the year-ago quarter. The adjusted EBITDA margin was 31.2% in the quarter under review compared with 8.8% in the prior year’s third quarter.
Financial Position
Ferroglobe ended the third quarter of 2022 with $237 million of cash in hand, down from the $306.5 million at end of the second quarter of 2022. Cash flow from operations during the quarter was $55 million. During the quarter the company redeemed $60 million of its 9% super senior secured notes. This action has lowered its annual interest expense by over $5 million.
Price Performance
Ferroglobe’s shares have declined 5.2% over the past year, compared with the industry’s fall of 1.2%.
Zacks Rank & Stocks to Consider
Ferroglobe currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) , Commercial Metals Company (CMC - Free Report) and Reliance Steel & Aluminum Co. (RS - Free Report) . While SQM and CMC sport a Zacks Rank #1 (Strong Buy), RS carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sociedad has a projected earnings growth rate of 538.1% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 1.2% upward in the past 60 days.
Sociedad has a trailing four-quarter earnings surprise of roughly 27.2%. SQM has rallied around 60% in a year.
The Zacks Consensus Estimate for CMC's current-year earnings has been revised 3.8% upward in the past 60 days. Commercial Metals’ earnings beat the Zacks Consensus Estimate in each of the last four quarters.
CMC has a trailing four-quarter earnings surprise of roughly 19.7%, on average. The company’s shares have gained around 38% in a year.
Reliance Steel has a projected earnings growth rate of 29.7% for the current year. The Zacks Consensus Estimate for RS's current-year earnings has been revised 0.1% upward in the past 60 days.
Reliance Steel’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 13.6%, on average. RS has gained around 23% in a year.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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