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Centrus Energy (LEU) Q4 Earnings Top Estimates, Sales Dip Y/Y

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Centrus Energy Corp. (LEU - Free Report) reported fourth-quarter 2023 earnings of $3.58 per share, which beat the Zacks Consensus Estimate of 78 cents. The bottom-line figure also marked a 152% surge from the year-ago quarter.

Net sales were around $104 million, which declined 17.9% year over year. The top line beat the Zacks Consensus Estimate of $61 million.

The cost of sales decreased 30.8% year over year to $54 million in the fourth quarter of 2023. Selling, general and administrative costs for the quarter were $8 million, down from the prior-year quarter’s $10 million.

The gross profit for the quarter came in at $50 million compared with the prior-year quarter’s $48 million. The gross margin came in at 48.1%, up from the 38.4% reported in 2022.

Operating profit in the fourth quarter was $33 million, reflecting 4% year-over-year growth. The operating margin in the reported quarter was 31.5% compared with 24.8% in the year-ago quarter.

Centrus Energy Corp. Price, Consensus and EPS Surprise

 

Centrus Energy Corp. Price, Consensus and EPS Surprise

Centrus Energy Corp. price-consensus-eps-surprise-chart | Centrus Energy Corp. Quote

Segmental Performance

Net sales in the Separative work units segment totaled $61 million, down 32.6% year over year. The Uranium segment’s sales fell 3.2% year over year to $21.3 million. The cost of sales of the two segments came in at $38 million, down from $45 million in the fourth quarter of 2022.

Net sales in the Technical solutions segment totaled $22 million, up 53.6% year over year. The segment’s cost of sales was $16 million in the fourth quarter of 2023 compared to $33 million in the fourth quarter of 2022.

Financial Update

Centrus Energy generated net cash from operating activities of $9 million in 2023, down from $20 million in 2022. Cash and cash equivalents were $201 million at the end of 2023 compared with $280 million as of the end of 2022. Long-term debt was $90 million as of Dec 31, 2023, down from $96 million as of Dec 31, 2022.

2023 Performance

Centrus Energy reported earnings per share of $5.44 in 2023. The bottom line improved 56% year-over year and beat the Zacks Consensus Estimate of earnings of $2.61 per share. Net sales were around $320 million, which rose 9% year over year. The top line beat the consensus estimate of $278 million.

Price Performance

LEU shares have gained 11.8% in the past year against the industry’s 4% decline.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Zacks Rank & Stocks to Consider

Centrus Energy currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the basic materials space are Carpenter Technology Corporation (CRS - Free Report) , Cameco Corporation (CCJ - Free Report) and Alpha Metallurgical Resources, Inc. (AMR - Free Report) . These three companies currently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Carpenter Technology’s 2024 earnings is pegged at $3.96 per share. The consensus estimate for 2024 earnings has moved 11% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 14.3%. CRS shares have gained 29.8% in a year.

The Zacks Consensus Estimate for Cameco’s 2024 earnings is pegged at 72 cents per share, indicating an increase of 188% from the prior year. CCJ shares have gained 68.8% in a year.

Alpha Metallurgical Resources has an average trailing four-quarter earnings surprise of 9.6%. The Zacks Consensus Estimate for AMR’s 2024 earnings is pegged at $43.05  per share. Earnings estimates have moved 48% north in the past 60 days. AMR shares rallied 132% last year.


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