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Century Aluminum (CENX) Q1 Loss Narrower than Expectation

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Century Aluminum (CENX - Free Report) logged a net loss of $15.1 million or 17 cents per share in first-quarter 2017, lower than a net loss of $16.2 million or 19 cents per share it posted a year ago.

The results in the reported quarter were affected by a $14 million unrealized loss associated with forward and derivative contracts.

Barring one-time items, Century Aluminum’s adjusted net loss was 5 cents per share in the reported quarter, narrower than the Zacks Consensus Estimate of a loss of 15 cents.

Century Aluminum Company Price, Consensus and EPS Surprise

 

Century Aluminum Company Price, Consensus and EPS Surprise | Century Aluminum Company Quote

Revenues and Shipments

The company logged revenues of $365.8 million in the reported quarter, up around 15% year over year. Sales beat the Zacks Consensus Estimate of $361 million. Shipments of primary aluminum in the quarter were 186,395 tons, up from 160,119 tons shipped a year ago.  

Financials

Century Aluminum ended the quarter with cash and cash equivalents of around $125.9 million, down roughly 0.5% year over year. Net cash used in operating activities in the quarter was $11.3 million.

Outlook

Century Aluminum’s President and CEO Michael Bless said that the company’s results should continue to strengthen in the prevailing market environment. Significant trade flows due to illegally subsidized excess capacity and production in China continue to distort the company’s markets in the U.S. and Europe, Bless noted.

The company, however, is seeing healthy demand in its markets. Bless also added that fair trading conditions along with Century Aluminum’s market position in the U.S. and Europe are expected to produce an attractive environment for the company’s shareholders.

Price Performance

Century Aluminum has outperformed the Zacks categorized Metal Procurement & Fabrication industry over a year. The company’s shares have gained around 58.7% over this period, compared with roughly 20.9% gain recorded by the industry.



 

Zacks Rank & Key Picks

Century Aluminum currently carries a Zacks Rank #3 (Hold).

Better-placed companies in the basic materials space include The Chemours Company (CC - Free Report) , Methanex Corporation (MEOH - Free Report) and Kronos Worldwide, Inc. (KRO - Free Report) , all holding a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Chemours has an expected long-term growth of 15.5%.

Methanex has an expected long-term growth of 15%.

Kronos has an expected long-term growth of 5%.

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