Century Aluminum Q2 adjusted EBITDA slightly beats on favorable metal prices, sales mix
Century Aluminum Q2 adjusted EBITDA slightly beats on favorable metal prices, sales mix
Overview
U.S. aluminum smelter's Q2 sales rose sequentially but missed analyst expectations
Q2 adjusted EBITDA slightly beat analyst expectations, driven by favorable metal prices and sales mix
Outlook
Century Aluminum expects Q3 Adjusted EBITDA attributable to Century between $325 mln and $345 mln
Result Drivers
HIGHER METAL PRICES AND SHIPMENTS - Co said increased realized metal prices and higher shipments from Mt. Holly expansion and Grundartangi restart drove sequential sales growth
FAVORABLE POWER PRICES - Co cited improved weather conditions in the U.S. as leading to favorable power price realization
INSURANCE PROCEEDS - Gain on insurance proceeds related to Iceland equipment failure contributed to results
Company press release: ID:nGNXbd9Vgd
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Miss | $752.10 mln | $830.50 mln (3 Analysts) |
Q2 Adjusted EPS | Beat | $2.46 | $2.30 (2 Analysts) |
Q2 EPS |
| $2.39 |
|
Q2 Net Income |
| $249.30 mln |
|
Q2 Adjusted EBITDA | Slight Beat* | $326.90 mln | $326.86 mln (3 Analysts) |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the aluminum peer group is "buy"
Wall Street's median 12-month price target for Century Aluminum Company is $65.00, about 38.6% above its August 5 closing price of $46.90
The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 6 three months ago
Reuters Recommended Reads
Aug 4 - Ball Corp beats quarterly estimates on steady demand for its aluminum cans
Aug 4 - UK's Ferroglobe Q2 sales rise sequentially as adjusted EBITDA improves
Aug 5 - Coca-Cola Consolidated Q2 net sales rise 11%, but margins hit by higher aluminum costs
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)