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Century (CENX) Down 3.9% Since Last Earnings Report: Can It Rebound?

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A month has gone by since the last earnings report for Century Aluminum (CENX - Free Report) . Shares have lost about 3.9% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Century due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Century Aluminum's Q2 Earnings Miss, Sales Decline Y/Y

Century Aluminium 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 (from related parties) of $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.

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.

 

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review. The consensus estimate has shifted -162.5% due to these changes.

VGM Scores

Currently, Century has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise Century has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.


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