Ferroglobe Q3 sales fall sequentially on lower shipments
Overview
Ferroglobe Q3 sales rose 19% yr/yr but fell 2% sequentially
Adjusted EBITDA turned negative, mainly due to higher energy costs in Spain
Company generated positive operating and free cash flow, aided by lower working capital
Outlook
Company targets adjusted EBITDA improvement of $85 mln to $115 mln at full run rate
Company expects to further reduce working capital needs in coming quarters
Company sees continued challenging market conditions in Europe due to subdued demand and imports
Result Drivers
HIGHER ENERGY COSTS - Co said substantially higher energy prices, mainly in Spain, weighed on adjusted EBITDA and profitability
LOWER SHIPMENTS - Co attributed sequential sales decline to lower shipments of silicon metal and silicon-based alloys
COST REDUCTION PLANS - Co said it is closing plants and reducing overhead to improve profitability and capacity utilization
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | $369.8 mln | $382.80 mln (2 Analysts) | |
Q3 Adjusted Loss Per Share | $0.06 | $0.03 (2 Analysts) | |
Q3 Adjusted EBITDA | -$2.4 mln | $12.20 mln (2 Analysts) | |
Q3 Operating Free Cash Flow | $25.9 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the specialty mining & metals peer group is "buy"
Wall Street's median 12-month price target for Ferroglobe PLC is $6.00, about 56.3% above its November 2 closing price of $3.84
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 17 three months ago
Reuters Recommended Reads
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Nov 2 - Huntsman Q3 revenue beats estimates on higher sales volumes
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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.)