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Century Aluminum (CENX) Q3 Earnings and Sales Beat Estimates

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Century Aluminum Company (CENX - Free Report) reported a net loss of $58.2 million or 65 cents per share in third-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 affected by $6.2 million of exceptional items.

Barring one-time items, adjusted loss was 67 cents per share, narrower than the Zacks Consensus Estimate of a loss of 69 cents.

 

Century Aluminum Company Price, Consensus and EPS Surprise

 

Century Aluminum Company Price, Consensus and EPS Surprise

Century Aluminum Company price-consensus-eps-surprise-chart | Century Aluminum Company Quote

 

Revenues and Shipments

The company generated net sales of $392.9 million in the third quarter, down around 10% year over year. The figure, however, surpassed the Zacks Consensus Estimate of $370.4 million.

Shipments of primary aluminum were 203,022 tons, up around 2% year over year.

Financials

At the end of the quarter, the company had cash and cash equivalents of $81.4 million, up more than three fold year over year.

Net cash provided by operating activities was $33.3 million for the nine months ended Sep 30, 2020.

Outlook

Century Aluminum stated that the industry in the United States and Europe continues to recover. Moreover, the company is seeing an improvement in order rates and its customers are showing increasing confidence regarding the remainder of 2020 as well as 2021. While metal price has strengthened, it continues to be impacted by the volatility affecting all risk assets, the company noted.

Price Performance

Century Aluminum’s shares rose 20.2% in the past year against the industry’s 8% decline.

 

 

Zacks Rank & Key Picks

Century Aluminum currently carries a Zacks Rank #4 (Sell).

Better-ranked stocks worth considering in the basic materials space include Agnico Eagle Mines Limited (AEM - Free Report) , Barrick Gold Corporation (GOLD - Free Report) and B2Gold Corp. (BTG - Free Report) .

Agnico Eagle has a projected earnings growth rate of 102.1% for the current year. The company’s shares have gained around 28% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Barrick Gold has an expected earnings growth rate of 100% for the current year. The company’s shares have surged around 51% in the past year. It currently carries a Zacks Rank #2 (Buy).

B2Gold has a projected earnings growth rate of 250% for the current year. The company’s shares have shot up roughly 77% in a year. It currently carries a Zacks Rank #2.

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