Century Aluminum (CENX) Up 8.1% Since Earnings Report: Can It Continue?

A month has gone by since the last earnings report for Century Aluminum Company CENX. Shares have added about 8.1% in that time frame.

Will the recent positive trend continue leading up to its next earnings release, or is CENX 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 Q1 Earnings & Revenues Top Estimates

Century Aluminum reported a loss of $0.3 million in first-quarter 2018 as compared with a loss of $15.1 million in the year-ago period. On a per share basis, the company reported break-even results compared with a loss of 17 cents per share in the year-ago period.

Results in the reported quarter were favorably impacted by a $3.2 million benefit from low cost or net realizable value inventory adjustments.

Barring one-time items, Century Aluminum’s adjusted loss was 4 cents per share in the quarter, which was narrower than the Zacks Consensus Estimate of a loss of 23 cents.

Revenues and Shipments

The company registered revenues of $454.5 million in the reported quarter, up around 5% year over year. It surpassed the Zacks Consensus Estimate of $437 million. Shipments of primary aluminum in the quarter were 187,238 tons, up from 186,395 tons shipped in the year-ago quarter. 


Financials

Century Aluminum ended the quarter with cash and cash equivalents of $130.8 million, up 3.8% year over year. Net cash used operating activities for the quarter was $33 million.

Outlook

Century Aluminum is seeing strong industry fundamentals and attractive demand growth in most global regions. It expects significant opportunity in the U.S. market over the coming years along with limited exemptions from tariffs. The company also plans to restart the three potlines at its Hawesville plant and complete several capital projects required to help the plant achieve full-production capacity again. The plant is anticipated to return to full capacity by early 2019.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month. There has been one revision higher for the current quarter compared to one lower.

Century Aluminum Company Price and Consensus

 

Century Aluminum Company Price and Consensus | Century Aluminum Company Quote

VGM Scores

At this time, CENX has a poor Growth Score of F and a grade with the same score on the momentum front. The stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

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

The company's stock is suitable solely for value based on our styles scores.

Outlook

CENX has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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