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Ferroglobe Q3 sales fall sequentially on lower shipments

By Reuters News


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

  • Nov 2 - Manufacturing solid but strain of energy costs, supply disruptions starts to show

  • Nov 3 - Switzerland's Clariant Q3 sales beat on higher prices, EBITDA misses on cost pressure

  • Nov 2 - Huntsman Q3 revenue beats estimates on higher sales volumes


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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