Century Aluminum (CENX) Q3 Earnings and Sales Beat Estimates
Century Aluminum Company CENX 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-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, Barrick Gold Corporation GOLD and B2Gold Corp. BTG.
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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