| Will Century Aluminum (CENX) Miss Q2 Earnings Estimates? - Analyst Blog | |
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Century Aluminum Co. CENX is scheduled to report second-quarter 2015 results after the closing bell on Aug 6. In the last quarter, this aluminum company had delivered a positive earnings surprise of 14.29%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Century Aluminum anticipates volatility and uncertainty in markets to persist. The company is also facing the problem of aluminum overcapacity owing to China’s excess supply of the metal. Large exports from China and a strong dollar continue to weigh on the market.
Moreover, Century Aluminum recently announced the permanent closure of its Ravenswood, WV aluminum smelter. The plant’s operations were halted since Feb 2009 and discontinued of late as Century Aluminum failed to secure a competitive power contract for the smelter. Additionally, a challenging aluminum market and large exports from China have created an environment that is unfavorable for resuming operations at the plant.
Withstanding this critical macro environment, Century Aluminum recorded decent first-quarter 2015 results, aided by strong operating efficiencies. The company also looks forward to many more growth investments. The post-acquisition activities at the company’s Mt. Holly aluminum smelter are on track, with progress noted in key business areas like safety, operations and commercial activities.
Century Aluminum’s trading conditions in its markets remain reasonably attractive. The fundamentals that should drive market conditions over the long term, most specifically an attractive demand growth profile, remain firmly in place.
Earnings Whispers Our proven model shows that Century Aluminum is likely to miss earnings estimates this quarter. This is because the stock has a negative Earnings ESP (Expected Surprise Prediction) and a Zacks Rank #5 (Strong Sell). Zacks ESP: Century Aluminum has an Earnings ESP of -52.94% – the difference between the Most Accurate estimate of 16 cents and the Zacks Consensus Estimate of 34 cents.
Zacks Rank: Century Aluminum’s Zacks Rank #5, when combined with a negative ESP, indicates an earnings miss. We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions. Stocks that Warrant a Look
Here are some companies in the basic materials sector you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Albemarle Corporation ALB has an Earnings ESP of +2.44% and a Zacks Rank #2 (Buy).
Thompson Creek Metals Company Inc. TC has an Earnings ESP of +100% and a Zacks Rank #3 (Hold).
Axalta Coating Systems Ltd. AXTA has an Earnings ESP of +3.33% and a Zacks Rank #3.
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Century Aluminum is a producing company based in United states of america. Century Aluminum is listed in United States of America. Its market capitalisation is US$ 1.1 billions as of today (€ 1.0 billions). Its stock quote reached its lowest recent point on March 06, 2009 at US$ 1.06, and its highest recent level on September 12, 2024 at US$ 13.04. Century Aluminum has 87 260 000 shares outstanding. |