Century Aluminum’s Q3 EPS beats estimates by $0.20

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Century Aluminum ($NASDAQ:CENX) is an American aluminum producer. The company’s Q3 non-GAAP EPS of -$0.34 beats estimates by $0.20. Revenue for the quarter came in at $637.2M, missing expectations by $4.87M.

Despite the miss on revenue, Century Aluminum’s Q3 results were strong overall. The company’s EPS beat estimates by a wide margin, and its stock price reflects this. investors are hopeful that the company can continue to perform well in the future.

Earnings

Century Aluminum is an American aluminum producer. The company’s latest earning report for the fiscal year 2022 second quarter ending June 30 shows total revenue of $2850.7 million and net income of $63.1 million. This is a 28.8% increase in total revenue and a 137.8% decrease in net income compared to the previous year. However, Century Aluminum’s total revenue has more than tripled, reaching $2850.7 million from $1605.1 million, in the last three years.

Price History

On Monday, the company’s stock opened at $7.40 and closed at $7.30. Despite the EPS beat, media coverage has been mostly negative.

VI Analysis

The company’s fundamentals reflect its long term potential. The company has a strong balance sheet with minimal debt and a history of profitability. The company also has a strong competitive position in the aluminum market. However, the company faces some risks, including the potential for increased regulation of the aluminum industry, volatile aluminum prices, and competition from other aluminum producers.

VI Peers

The company’s main competitors are Tianshan Aluminum Group Co Ltd, Noranda Aluminum Holding Corp, and Nanjing Yunhai Special Metals Co Ltd.

– Tianshan Aluminum Group Co Ltd ($SZSE:002532)

Tianshan Aluminum Group Co Ltd is a Chinese aluminum producer. The company has a market cap of 30.98B as of 2022 and a Return on Equity of 16.7%. Tianshan Aluminum Group Co Ltd produces aluminum products for a variety of industries including construction, transportation, and packaging. The company has a strong presence in China and also exports its products to over 50 countries around the world.

– Noranda Aluminum Holding Corp ($OTCPK:NORNQ)

Noranda Aluminum Holding Corp is a Canada-based company that is engaged in the production of aluminum products. The Company operates through two segments: primary aluminum and alumina. The Company’s primary aluminum segment smelts and refines primary aluminum. The Company’s alumina segment mines, refines and markets alumina. The Company’s products include primary aluminum, alumina, aluminum fluoride, aluminum chloride and sodium aluminum fluoride.

– Nanjing Yunhai Special Metals Co Ltd ($SZSE:002182)

Nanjing Yunhai Special Metals Co Ltd is a Chinese company that manufactures and sells specialty metals. It has a market capitalization of 14.83 billion as of 2022 and a return on equity of 18.83%. The company produces a variety of metals such as titanium, zirconium, nickel, and tungsten. It also manufactures and sells a variety of products made from these metals, such as pipes, tubing, and fittings. The company has a strong presence in China and Asia, and its products are used in a variety of industries including aerospace, chemical processing, and oil and gas.

Summary

Investing in CENTURY ALUMINIUM can be a risky proposition. The company has been beset by a number of problems in recent years, including falling aluminum prices, production disruptions, and allegations of bribery and corruption. However, the company’s share price has rebounded somewhat in recent months, and some investors believe that it could be a turnaround candidate. Given the risks involved, however, investors should tread carefully before investing in CENTURY ALUMINIUM.