Alcoa Q2 Profit Beats Wall Street – Update

Alcoa Inc. (AA), the largest producer of aluminum in the US, Wednesday reported a second-quarter profit that trumped Wall Street estimates, driven largely by revenue growth.

New York-based Alcoa’s second-quarter profit was $75 million or $0.39 per share, compared to $75 million or $0.40 per share last year.

Adjusted earnings for the quarter were $1.52 per share, up from $0.62 per share last year. Analysts polled by Thomson Reuters expected earnings of $1.34 per share.

Sales for the quarter rose to $3.58 billion from $2.86 billion last year. Analysts had a consensus revenue estimate of $3.44 billion.

“Market pricing continued to be favorable in the second quarter and drove a 38 percent sequential increase in adjusted EBITDA excluding special items. These market tailwinds also facilitated greater progress on our strategic priorities to reduce complexity in our Company, drive returns from our assets, and address pension liabilities to strengthen the balance sheet for the long-term,” said Alcoa President and Chief Executive Officer Roy Harvey.

Aluminum shipments rose to 853,000 metric tons from to 833,000 metric tons last year, while alumina shipments dropped to 2.29 million metric tons from 2.39 million metric tons last year.

Alcoa’s earnings report are closely watched by investors as it’s one of the first major companies to report quarterly results and unofficially kicks starts the earnings season.

In 2016, Alcoa separated into two independent, publicly-traded companies Arconic Inc. and Alcoa Corp., a higher-margin manufacturing operations and a smelting and refining business.

AA closed Wednesday’s trading at $47.96, down $0.06 or 0.12%, on the NYSE. The stock further slipped $2.11 or 4.40% in the after-hours trade.

by RTTNews Staff Writer

Source: Read Full Article