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Century Aluminum (CENX) Q2 Earnings & Sales Trail Estimates

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Century Aluminum (CENX - Free Report) logged a profit (as reported) of $7.1 million or 7 cents per share in second-quarter 2017, compared with a loss of $9.5 million or 11 cents per share it posted a year ago.

The results in the reported quarter were aided by a $6.1 million of unrealized gain associated with forward and derivative contracts.

Barring one-time items, Century Aluminum’s adjusted earnings were a penny per share in the reported quarter, missing the Zacks Consensus Estimate of 29 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 registered revenues of $388.8 million in the reported quarter, up around 19% year over year. Sales, however, fell short of the Zacks Consensus Estimate of $400 million. Shipments of primary aluminum in the quarter were 182,829 tons, down from 185,567 tons shipped a year ago.  

Financials

Century Aluminum ended the quarter with cash and cash equivalents of around $130.7 million, up 1% year over year. Net cash provided by operating activities in the quarter was $14.4 million.

Outlook

Century Aluminum said that it is seeing strong demand for its products and strength in general manufacturing and construction in its markets. However, the company still expects a global supply surplus in primary aluminum for the foreseeable future, triggered by surging and heavily subsidized production from China. Trade data continue to show record exports of aluminum products from China, Century Aluminum noted. Chinese production rose 15% year over year during first-half 2017.

Century Aluminum also expects alumina unit costs to decrease in third-quarter 2017.  The company saw an increase in the costs of other key raw materials in the second quarter and expects this trend to continue in the third quarter.

Price Performance

Century Aluminum’s shares rallied 145.5% over the past year, outperforming the 25.3% gain of the industry it belongs to.



 

Zacks Rank & Key Picks

Century Aluminum is a Zacks Rank #1 (Strong Buy) stock.

Other well-placed companies in the basic materials space include Westlake Chemical Corporation (WLK - Free Report) , Air Products and Chemicals, Inc. (APD - Free Report) and The Chemours Company (CC - Free Report) , all sporting a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Westlake has an expected long-term earnings growth of 7.2%.

Air Products has an expected long-term earnings growth of 11.9%.

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

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