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Century (CENX) Down 23.9% Since Last Earnings Report: Can It Rebound?

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A month has gone by since the last earnings report for Century Aluminum (CENX - Free Report) . Shares have lost about 23.9% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Century due for a breakout? 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 drivers.

Century Aluminum Q1 Earnings, Revenues Beat Estimates

Century Aluminum reported net loss of $34.6 million or 39 cents per share in first-quarter 2019, wider than a loss of $3 million or breakeven level in the year-ago quarter.

Barring one-time items, adjusted loss came in at 70 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 71 cents.

Revenues and Shipments

The company generated revenues of $490 million in the quarter, up around 7.8% year over year. The figure beat the Zacks Consensus Estimate of $485 million.

Shipments of primary aluminum were 206,451 tons, up 10.3% year over year. The shipments benefited from restart of the Hawesville facility.  

Financials

As of Mar 31, 2019, the company had cash and cash equivalents of $22.2 million, down from $130.8 million a year ago. Net cash used in operating activities was $21.5 million during the quarter.

Outlook

Per management, the market is well supplied presently and new production is expected to come online in 2019. Moreover, potential restarts in the Atlantic basin is expected put downward pressure on index prices. The company is executing its growth and cost structure improvement plans.

Conforming to the schedule, all three curtailed potlines at Hawesville were fully operational during the first quarter. The company is now focusing on installing and rebuilding the new technology on the two producing lines. The company believes that it is well positioned to capitalize on the return to a normal pricing environment.
 

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -67.27% due to these changes.

VGM Scores

Currently, Century has a subpar Growth Score of D, a grade with the same score on the momentum front. Following the exact same course, 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 F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Century has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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