Yahoo Finance Why Is Century (CENX) Up 18.1% Since Last Earnings Report?
A month has gone by since the last earnings report for Century Aluminum (CENX). Shares have added about 18.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Century due for a pullback? 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 Q1 Earnings & Sales Miss Estimates
Century Aluminum recorded first-quarter 2024 earnings of $2.26 per share. This compares favorably with the year-ago quarter's loss of 42 cents.
Barring one-time items, the loss per share was 39 cents in the reported quarter, wider than the Zacks Consensus Estimate of a loss of 19 cents.
Revenues and Shipments
The company generated net sales of $489.5 million in the reported quarter, down around 11.4% year over year. The figure missed the Zacks Consensus Estimate of $520.3 million.
Primary aluminum shipments were 174,627 tons, down around 3.6% year over year. Shipments rose 0.4% sequentially.
Financials
At the end of the quarter, the company had cash and cash equivalents of $93.5 million, up 207.5% year over year.
Net cash used in operating activities was $14.8 million in the quarter compared with $0.2 million in the year-ago period.
Outlook
Century expects its adjusted EBITDA in the second quarter to be in the range of $25-$35 million, factoring in higher LME (London Metal Exchange) prices and regional premiums, partly offset by the timing of partial power curtailments imposed on its Grundartangi facility.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
The consensus estimate has shifted 140% due to these changes.
VGM Scores
Currently, Century has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile 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 trending upward for the stock, and the magnitude of this revision looks promising. Notably, Century has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Century is part of the Zacks Metal Products - Procurement and Fabrication industry. Over the past month, TriMas (TRS), a stock from the same industry, has gained 1.8%. The company reported its results for the quarter ended March 2024 more than a month ago.
TriMas reported revenues of $227.1 million in the last reported quarter, representing a year-over-year change of +5.4%. EPS of $0.37 for the same period compares with $0.30 a year ago.
For the current quarter, TriMas is expected to post earnings of $0.51 per share, indicating a change of +2% from the year-ago quarter. The Zacks Consensus Estimate has changed +1% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for TriMas. Also, the stock has a VGM Score of B.
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Century Aluminum Company (CENX) : Free Stock Analysis Report
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