As we’ve already discussed, Century Aluminum (CENX) is expected to release its 3Q15 earnings on October 29, 2015. Other companies in the basic materials space (XLB), including Alcoa (AA), Norsk Hydro (NHYDY), and Freeport-McMoRan (FCX), have reported lower earnings in 3Q15, as weak commodity prices weighed heavy on the financial results. In this part of the series, we’ll explore what markets expect from Century Aluminum’s 3Q15 earnings.
- According to data compiled by Bloomberg, Century Aluminum is expected to post revenues of $445.7 million in 3Q15. In 2Q15, Century Aluminum posted net revenues of $523.5 million.
- Analysts expect Century Aluminum to post a negative EBITDA (earnings before interest, taxes, depreciation, and amortization) of $4.2 million in 3Q15. In 2Q15, Century Aluminum posted an adjusted EBITDA of $51 million.
- Century Aluminum is expected to post a loss per share of $0.27. The earnings have seen a downward revision of ~25% over the last four weeks.
- Century Aluminum’s earnings have outperformed market expectations only once in the last four quarters.
- Out of the eight analysts surveyed by Bloomberg, three rate Century Aluminum a “buy,” while one analyst rates it a “sell.” Four analysts have given it a “hold” rating.
- Century Aluminum has a consensus one-year price target of $9. This represents a 115% upside from current levels.
- Having said that, any upside in Century Aluminum would depend on how aluminum prices would play out in the next year. Aluminum has been trading weakly and recently hit a fresh six-year low.
We’ll be doing a detailed overview of Century Aluminum’s 3Q15 earnings. Keep visiting our Aluminum page for in-depth company and earnings overviews.