Century Aluminum (CENX) Q4 Earnings Beat Estimates, Sales Lag

Century Aluminum Company CENX recorded fourth-quarter 2023 earnings of 30 cents per share. This is in contrast to the year-ago quarter's loss of $1.24 per share. The figure beat the Zacks Consensus Estimate of a loss of 23 cents per share.

Century Aluminum Company Price, Consensus and EPS Surprise

Century Aluminum Company Price, Consensus and EPS Surprise

Century Aluminum Company price-consensus-eps-surprise-chart | Century Aluminum Company Quote

Revenues and Shipments

The company generated net sales of $512.3 million in the reported quarter, down around 3.3% year over year. The figure missed the Zacks Consensus Estimate of $514.4 million. Sales also fell 6% sequentially due to lower realized aluminum prices.

Shipments of primary aluminum were 173,871 tons, up around 2.6% year over year. Shipments also increased 1.1% sequentially.

FY23 Results

Earnings, as adjusted, in the full year 2023 were 33 cents per share compared with 26 cents a year ago. Net sales fell 21.3% year over year to $2,185.4 million.

Financials

Century's liquidity position as of Dec 31, 2023, which included $88.8 million in cash and cash equivalents and $223.7 million in combined borrowing availability, was $312.5 million, up $6.7 million from the third quarter of 2023.

Outlook

The company anticipates first-quarter adjusted EBITDA of $5-$15 million, factoring in decreased raw material prices offset by lower value-added product premiums.

Price Performance

Shares of Century Aluminum have declined 3.7% in the past year against the industry’s 2.3% rise.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank & Other Key Picks

Century Aluminum currently sports a Zacks Rank #1 (Strong Buy).

Other top-ranked stocks in the basic materials space are United States Steel Corporation X, Carpenter Technology Corporation CRS and Alpha Metallurgical Resources Inc. AMR.

United States Steel sports a current Zacks Rank of 1. X beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 54.8%. The company’s shares have soared 62.7% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Carpenter Technology currently sports a Zacks Rank of 1. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 12.2%. The company’s shares have soared 33.7% in the past year.

The Zacks Consensus Estimate for AMR’s current-year earnings has been revised 69% upward in the past 60 days. It currently sports a Zacks Rank of 1.  AMR delivered a trailing four-quarter earnings surprise of roughly 9.6%, on average. AMR shares are up around 128.8% in a year.

 

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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