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Why Is Century Aluminum (CENX) Up 17.1% Since the Last Earnings Report?

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About a month has gone by since the last earnings report for Century Aluminum Company (CENX - Free Report) . Shares have added about 17.1% in that time frame, outperforming the market.

Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Century Aluminum’s Q2 Earnings & Sales Trail Estimates

Century Aluminum logged a profit (as reported) of $7.1 million or $0.07 per share in second-quarter 2017, compared with a loss of $9.5 million or $0.11 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 $0.01 per share in the reported quarter, missing the Zacks Consensus Estimate of $0.29.

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.

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.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the past month as none of them issued any earnings estimate revisions.

VGM Scores

At this time, the stock has a strong Growth Score of A, though it is lagging a lot on the momentum front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

The company's stock is suitable solely for growth based on our styles scores.

Outlook

The stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.


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