Ferroglobe (GSM) Q1 Earnings Beat Estimates, Revenues Dip Y/Y

Ferroglobe PLC GSM reported break-even adjusted earnings in the first quarter of 2024, beating the Zacks Consensus Estimate of a loss of 2 cents. The company posted earnings per share of 5 cents in the year-ago quarter.Including one-time items, GSM reported a loss of 1 cent per share in the quarter under review against earnings of 11 cents per share in the year-ago quarter.GSM’s revenues fell 2.2% year over year to $392 million in the quarter under review, owing to lower pricing in silicon metal and silicon-based alloys, partially offset by higher volumes. The top line beat the Zacks Consensus Estimate of $343 million.Silicon metal revenues in the first quarter were $168 million, up 4.4% from the prior-year quarter. The average realized selling price was down 27.5%, while total shipments increased 44% on a year-over-year basis.Silicon-based alloy revenues in the quarter under review were $112 million, down 17.3% year over year. The average realized selling price and total shipments of silicon-based alloys decreased 20.6% and increased 4.2%, respectively, year over year.Manganese-based alloy revenues in the quarter were $66 million, up 7.7% from last year’s comparable quarter. The average realized selling price declined 19% year over year, whereas total shipments improved 33%.

Ferroglobe PLC Price, Consensus and EPS Surprise

 

Ferroglobe PLC price-consensus-eps-surprise-chart | Ferroglobe PLC Quote

Operational Update

Raw materials and energy consumption for production was $257 million in the first quarter of 2024 compared with $200 million in the first quarter of 2023.Operating profit was $2.6 million in the quarter, a 94.4% drop from $44.5 million in the prior-year quarter. Adjusted EBITDA was $26 million compared with $45 million in the year-ago quarter. The adjusted EBITDA margin was 6.6% in the quarter under review compared with 11.2% in the prior year’s first quarter.

Financial Position

Ferroglobe ended the first quarter of 2024 with a total cash balance of around $160 million compared with $344 million at the end of the prior-year quarter. Cash flow from operations during the quarter was $198 million, up from the $135 million reported in the comparable period last year.GSM’s gross debt declined year over year to $81 million at the end of the first quarter, the lowest gross debt in its history.

Guidance

The company expects 2024 adjusted EBITDA to be $130-$170 million, up from the previously announced $100-$170 million.

Price Performance

GSM shares have gained 25.8% over the past year compared with the industry’s 15.8% growth.

 

Zacks Investment Research

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 Zacks Rank

Ferroglobe currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Performance of Peer Stocks

Reliance, Inc. RS posted adjusted earnings of $5.23 per share in first-quarter 2024, down from $6.43 per share in the year-ago quarter.RS recorded net sales of $3.64 billion, down 8.1% year over year. The top line lagged the Zacks Consensus Estimate of $3.73 billion.Teck Resources TECK reported first-quarter 2023 adjusted earnings per share of 56 cents, missing the Zacks Consensus Estimate of 87 cents. The bottom line marked a 58% plunge from earnings of $1.32 per share in the year-ago quarter.TECK reported net sales of $2.96 billion compared with $2.8 billion in the year-ago quarter. The top line, however, missed the Zacks Consensus Estimate of $2.99 billion.Piedmont Lithium Inc. PLL came out with a quarterly loss of 61 cents per share, wider than the Zacks Consensus Estimate of a loss of 54 cents. The company posted a loss of 47 cents in the year-ago quarter.PLL posted revenues of $13.4 million for the quarter ended March 2024, missing the Zacks Consensus Estimate of $14 million.

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Matt Earle

Matthew Earle is the Founder of MiningFeeds. In 2005, Matt founded MiningNerds.com to provide data and information to the mining investment community. This site was merged with Highgrade Review to form MiningFeeds. Matt has a B.Sc. degree with a minor in geology from the University of Toronto.

By Matt Earle

Matthew Earle is the Founder of MiningFeeds. In 2005, Matt founded MiningNerds.com to provide data and information to the mining investment community. This site was merged with Highgrade Review to form MiningFeeds. Matt has a B.Sc. degree with a minor in geology from the University of Toronto.

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