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Ferroglobe (GSM) Q1 Earnings Beat Estimates, Revenues Dip Y/Y

Ferroglobe PLC GSM reported break-even adjusted earnings in the first quarter of 2024, beating the Zacks Consensus Estimate of a loss of 2 cents. The company posted earnings per share of 5 cents in the year-ago quarter.

Including one-time items, GSM reported a loss of 1 cent per share in the quarter under review against earnings of 11 cents per share in the year-ago quarter.

GSM’s revenues fell 2.2% year over year to $392 million in the quarter under review, owing to lower pricing in silicon metal and silicon-based alloys, partially offset by higher volumes. The top line beat the Zacks Consensus Estimate of $343 million.

Silicon metal revenues in the first quarter were $168 million, up 4.4% from the prior-year quarter. The average realized selling price was down 27.5%, while total shipments increased 44% on a year-over-year basis.

Silicon-based alloy revenues in the quarter under review were $112 million, down 17.3% year over year. The average realized selling price and total shipments of silicon-based alloys decreased 20.6% and increased 4.2%, respectively, year over year.

Manganese-based alloy revenues in the quarter were $66 million, up 7.7% from last year’s comparable quarter. The average realized selling price declined 19% year over year, whereas total shipments improved 33%.

Ferroglobe PLC Price, Consensus and EPS Surprise

 

Ferroglobe PLC price-consensus-eps-surprise-chart | Ferroglobe PLC Quote

Operational Update

Raw materials and energy consumption for production was $257 million in the first quarter of 2024 compared with $200 million in the first quarter of 2023.

Operating profit was $2.6 million in the quarter, a 94.4% drop from $44.5 million in the prior-year quarter. Adjusted EBITDA was $26 million compared with $45 million in the year-ago quarter. The adjusted EBITDA margin was 6.6% in the quarter under review compared with 11.2% in the prior year’s first quarter.

Financial Position

Ferroglobe ended the first quarter of 2024 with a total cash balance of around $160 million compared with $344 million at the end of the prior-year quarter. Cash flow from operations during the quarter was $198 million, up from the $135 million reported in the comparable period last year.

GSM’s gross debt declined year over year to $81 million at the end of the first quarter, the lowest gross debt in its history.

Guidance

The company expects 2024 adjusted EBITDA to be $130-$170 million, up from the previously announced $100-$170 million.

Price Performance

GSM shares have gained 25.8% over the past year compared with the industry’s 15.8% growth.

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Zacks Rank

Ferroglobe currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Performance of Peer Stocks

Reliance, Inc. RS posted adjusted earnings of $5.23 per share in first-quarter 2024, down from $6.43 per share in the year-ago quarter.

RS recorded net sales of $3.64 billion, down 8.1% year over year. The top line lagged the Zacks Consensus Estimate of $3.73 billion.

Teck Resources TECK reported first-quarter 2023 adjusted earnings per share of 56 cents, missing the Zacks Consensus Estimate of 87 cents. The bottom line marked a 58% plunge from earnings of $1.32 per share in the year-ago quarter.

TECK reported net sales of $2.96 billion compared with $2.8 billion in the year-ago quarter. The top line, however, missed the Zacks Consensus Estimate of $2.99 billion.

Piedmont Lithium Inc. PLL came out with a quarterly loss of 61 cents per share, wider than the Zacks Consensus Estimate of a loss of 54 cents. The company posted a loss of 47 cents in the year-ago quarter.

PLL posted revenues of $13.4 million for the quarter ended March 2024, missing the Zacks Consensus Estimate of $14 million.

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