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Century Aluminum (CENX) Q2 Earnings Miss, Sales Decline Y/Y

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Century Aluminium Company (CENX - Free Report) reported a net loss of $26.9 million or 30 cents per share in second-quarter 2020, wider than a net loss of $20.7 million or 23 cents per share in the year-ago quarter. The bottom line in the reported quarter was hurt by $8.5 million of exceptional items.

Barring one-time items, adjusted loss was 19 cents per share, wider than the Zacks Consensus Estimate of a loss of 8 cents.

Revenues and Shipments

The company generated net sales of $401.9 million in the second quarter, down 15% year over year. Net sales from related parties were $285.6 million in the quarter, down 6.4% year over year.

Shipments of primary aluminum were 210,309 tons, up 3.4% year over year.

Century Aluminum Company Price, Consensus and EPS Surprise

 

Financials

At the end of the quarter, the company had cash and cash equivalents of $174.1 million, up from $25.7 million a year ago.

Net cash provided by operating activities was $71.6 million for the six months ended Jun 30, 2020.

Outlook

Century Aluminum stated that due to the normal lag in price realization, reported financial performance of the third quarter will reflect the depressed commodity price environment that persisted in April and May.

Price Performance

Century Aluminum’s shares rose 50.4% in the past year against the industry’s 8.2% decline.

 

 

Zacks Rank & Stocks to Consider

The company currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Alamos Gold Inc. (AGI - Free Report) , Barrick Gold Corporation (GOLD - Free Report) and Gold Fields Limited (GFI - Free Report) .

Alamos Gold has a projected earnings growth rate of 75% for the current year. The stock has gained around 47% in a year. It currently has a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Barrick Gold has a projected earnings growth rate of 72.6% for the current year. The company’s shares have gained around 70% in a year. It currently has a Zacks Rank #2.

Gold Fields has an expected earnings growth rate of 35.7% for 2020. The company’s shares have rallied 131% in the past year.It is presently a Zacks #2 Ranked player.

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