ARNC - Arconic raises full-year sales guidance but trims EBITDA outlook

Arconic (NYSE:ARNC) -1.2% pre-market after Q3 GAAP earnings missed estimates but more than tripled to $16M from $5M in the year-ago period, as revenues rose by a third Y/Y and 5% Q/Q to $1.9B mostly due to higher aluminum prices. Q3 adjusted EBITDA rose 4% Y/Y but fell 9% Q/Q to $171M, citing "productivity issues related to labor shortages, higher energy costs, and ongoing weakness in automotive due to semiconductor supply issues." Arconic raises guidance for FY 2021 revenues to $7.5B-$7.7B to reflect the impact of increased metal prices, above $7.46B analyst consensus estimate and its previous forecast of $7.3B-$7.6B. The company also trims the top end of guidance for full-year adjusted EBITDA to $710M-$730M from $710M-$750M, and sees adjusted free cash flow of ~$50M compared with a previous outlook for $250M. Arconic shares have edged 2.5% higher YTD but have gained 40% over the past year.

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Arconic raises full-year sales guidance but trims EBITDA outlook