Century Aluminum (NASDAQ:CENX) Issues Earnings Results

Century Aluminum (NASDAQ:CENX) posted its quarterly earnings results on Thursday. The industrial products company reported $2.58 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.67 by ($0.09), FiscalAI reports. The firm had revenue of $961.20 million for the quarter, compared to analysts’ expectations of $951.71 million. Century Aluminum had a net margin of 22.63% and a return on equity of 33.83%. Century Aluminum’s revenue was up 52.0% on a year-over-year basis. During the same period last year, the firm posted $0.56 EPS.

Here are the key takeaways from Century Aluminum’s conference call:

• Positive Sentiment: Century reported nearly $1 billion in third-quarter sales and $332 million in adjusted EBITDA, while ending the quarter with $755 million in cash, more cash than debt, and over $1 billion in liquidity.
• Neutral Sentiment: Shipments rose 33% sequentially as Mt. Holly returned to full capacity and Grundartangi restarted Potline 2. Mt. Holly is expected to reach full volume during Q4, Grundartangi expects to restore full amperage in Q1, while Jamalco continues to address bauxite quality issues.
• Positive Sentiment: Management described aluminum markets as robust, citing constrained supply, strong U.S. and European demand, and historically low global inventories. It said demand is supported by data-center and power-system investment, automotive, aerospace, and defense.
• Negative Sentiment: Century forecasts fourth-quarter adjusted EBITDA of $275 million to $300 million, below Q3’s $332 million, with lower expected realized pricing projected to reduce EBITDA by $35 million to $45 million sequentially.
• Neutral Sentiment: The Oklahoma smelter project advanced on financing, power-contract discussions, and engineering, but community and regulatory engagement continues and FID has not yet been reached. Management said it plans to defer shareholder returns until FID clarifies the project’s funding needs.

Century Aluminum Stock Up 11.3%

NASDAQ CENX traded up $3.40 during trading hours on Friday, hitting $33.47. The company had a trading volume of 3,257,735 shares, compared to its average volume of 2,139,764. The firm’s 50 day moving average is $37.87 and its 200 day moving average is $49.41. The company has a debt-to-equity ratio of 0.31, a current ratio of 2.75 and a quick ratio of 1.61. Century Aluminum has a fifty-two week low of $25.40 and a fifty-two week high of $70.43. The company has a market capitalization of $3.31 billion, a price-to-earnings ratio of 3.92 and a beta of 2.17.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on CENX. Wall Street Zen lowered Century Aluminum from a “strong-buy” rating to a “buy” rating in a research note on Sunday, September 20th. UBS Group dropped their target price on shares of Century Aluminum from $60.00 to $55.00 and set a “buy” rating for the company in a research report on Thursday, October 8th. Zacks Research upgraded shares of Century Aluminum from a “strong sell” rating to a “hold” rating in a report on Monday, October 19th. B. Riley Financial reduced their price target on shares of Century Aluminum from $72.00 to $64.00 and set a “buy” rating on the stock in a research report on Tuesday. Finally, Barclays started coverage on shares of Century Aluminum in a research note on Wednesday, October 14th. They set an “equal weight” rating and a $40.00 price objective for the company. Four analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $61.00.

Trending Headlines about Century Aluminum

Here are the key news stories impacting Century Aluminum this week:

• Positive Sentiment: Shipments rose about 33% sequentially to 173,483 tonnes, aided by the restart of the company’s Iceland smelter. Revenue increased 52% year over year to $961.2 million, while reported diluted EPS was $2.89, up from $0.56 a year earlier. Century Aluminum Q3 results
• Positive Sentiment: Quarterly revenue exceeded analyst estimates, and the production recovery could support further sales growth if operating conditions remain favorable. Iceland smelter restart and Q3 performance
• Neutral Sentiment: Wells Fargo lowered its price target from $79 to $71 but kept an Overweight rating, indicating continued optimism despite a more cautious valuation. Wells Fargo rating and target
• Negative Sentiment: Adjusted EPS was $2.58, below the cited analyst consensus of $2.67. Reports attributed pressure to power and operating costs, tempering the strong shipment and revenue figures. Q3 results and cost pressures

About Century Aluminum

Century Aluminum Company is a producer of primary aluminum. The company operates aluminum smelters that convert alumina into aluminum metal, supplying standard-grade and value-added products used in transportation, construction, packaging, aerospace, and other industrial applications.

Century Aluminum’s operations are located in the United States and Iceland. Its U.S. facilities include the Sebree smelter in Kentucky and the Mt. Holly smelter in South Carolina, while its Icelandic operations are based at the Grundartangi aluminum smelter.