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Noranda Aluminum(NOR) is a North America-based integrated producer of aluminum products and rolled aluminum coils. The company operates in two business segments: metals -- its upstream business; and rolled products -- its downstream business.
For the latest first quarter ended March 2011, the company reported earnings of $38.3 million, or 56 cents per share, compared to a loss of $0.1 million, or break even per share in the year-ago quarter. Revenue for the period soared 30.9% year-over-year to $394.6 million from $301.5 million, resulting primarily from higher realized prices for aluminum and bigger third-party shipment volumes in the bauxite, primary aluminum, and flat rolled products segments.
In terms of operating metrics, the average realized Midwest transaction price of aluminum products was $1.18 per pound, compared to $1.04 per pound in the first quarter of 2010. Total primary aluminum shipments rose 18.4% to 143 million pounds from 120.8 million pounds a year ago.
Of the seven analysts covering the stock, 57% recommend a buy, while the remaining rate it a hold. There are no sell ratings on the stock. On average, analysts estimate an upside of 19.6% to $19 from current levels. The stock currently trades at an attractive P/E of 9.2