Century Aluminum (NASDAQ:CENX) Releases Earnings Results

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

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 Price Performance

Shares of NASDAQ CENX traded up $3.40 during midday trading on Friday, reaching $33.47. 3,257,735 shares of the company were exchanged, compared to its average volume of 2,139,764. The stock’s 50-day moving average price is $37.87 and its 200-day moving average price is $49.41. The stock has a market cap of $3.31 billion, a P/E ratio of 3.92 and a beta of 2.17. The company has a quick ratio of 1.61, a current ratio of 2.75 and a debt-to-equity ratio of 0.31. Century Aluminum has a one year low of $25.40 and a one year high of $70.43.

Analysts Set New Price Targets

Several analysts recently weighed in on the company. Barclays assumed coverage on Century Aluminum in a research report on Wednesday, October 14th. They set an “equal weight” rating and a $40.00 price objective for the company. Wall Street Zen cut Century Aluminum from a “strong-buy” rating to a “buy” rating in a research report on Sunday, September 20th. UBS Group lowered their target price on Century Aluminum from $60.00 to $55.00 and set a “buy” rating for the company in a research note on Thursday, October 8th. Wells Fargo & Company lowered their target price on Century Aluminum from $79.00 to $71.00 and set an “overweight” rating for the company in a research note on Friday. Finally, B. Riley Financial dropped their target price on shares of Century Aluminum from $72.00 to $64.00 and set a “buy” rating for the company in a report on Tuesday. Four research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, Century Aluminum presently has a consensus rating of “Moderate Buy” and a consensus 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.