ARNC - Free Research Report as Alcoa's Quarterly Revenue Grew 16% Adjusted EPS Surged 22%
Stock Monitor: Arconic Post Earnings Reporting
LONDON, UK / ACCESSWIRE / May 02, 2018 / Active-Investors.com has just released a free earnings report on Alcoa Corp. (NYSE: AA). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=AA. Alcoa reported its first quarter fiscal 2018 operating and financial results on April 18, 2018. The aluminum producer surpassed earnings estimates. Additionally, the Company provided market update for aluminum, alumina, and bauxite, and it also raised its annual adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) guidance. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Alcoa most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
Alcoa reported first quarter 2018 revenue of $3.09 billion, up 16% compared to $2.66 billion in Q1 2017 and down 3% sequentially, largely due to decreased aluminum shipments and a decline in alumina prices, partially offset by both increased shipments and favorable mix in alumina and higher aluminum prices. The Company's reported numbers fell below analysts' estimates of $3.17 billion.
For Q1 2018, Alcoa reported net income of $150 million, or $0.80 per share, compared to net income of $225 million, or $1.23 per diluted share, in Q1 2017 and a net loss of $196 million, or $1.06 per diluted share, in Q4 2017. The Company reported a positive impact of $5 million from special items in the reported quarter, primarily due to a net gain from changes to employee retirement benefits in the United States and Canada, announced in January 2018, and a net benefit related to certain mark-to-market energy derivatives.
Excluding special items, Alcoa's adjusted net income was $0.77 per share in Q1 2018 versus $0.63 per share in Q1 2017 and $1.04 per share in Q4 2017. The Company's earnings beat Wall Street's estimates of $0.60 per share.
In Q1 2018, Alcoa reported $653 million of adjusted EBITDA excluding special items, up 18% from $554 million in Q1 2017, but down 18% from $796 million in Q4 2017 primarily due to lower alumina prices.
Cash Matters
Alcoa ended the quarter on March 31, 2018, with a cash balance of $1.2 billion, down $162 million sequentially, but up $392 million on a y-o-y basis. The Company had $1.5 billion of debt as of March 31, 2018
During Q1 2018, Alcoa's cash from operations was $55 million and free cash flow was a negative $19 million primarily due to seasonal increases in working capital. The Company's cash used for financing activities and investing activities was $147 million and $74 million, respectively, in the reported quarter.
Market Update
Alcoa is projecting a global deficit for both aluminum and alumina in 2018. Due to delays in projects to expand smelters in China, the Company expects the global aluminum deficit to grow to between 600 thousand metric tons and 1 million metric tons, up from Q4 2017 deficit estimates of between 300 thousand metric tons and 700 thousand metric tons. Alcoa is projecting global aluminum demand growth between 4.25% to 5.25%.
In alumina, Alcoa projects a global deficit between 300 thousand metric tons and 1.1 million metric tons for full year 2018, primarily due to supply disruptions in the Atlantic region. The Company is anticipating global market for bauxite to remain in balance.
Outlook
Alcoa also updated its full-year outlook for adjusted EBITDA, excluding special items to range between $3.5 billion to $3.7 billion, up from the earlier guidance range of $2.6 billion to $2.8 billion, due to recent favorable market conditions.
Stock Performance Snapshot
May 01, 2018 - At Tuesday's closing bell, Alcoa's stock climbed 1.54%, ending the trading session at $51.99.
Volume traded for the day: 2.53 million shares.
Stock performance in the last month — up 17.25%; previous six-month period — up 8.52%; and past twelve-month period — up 56.22%
After yesterday's close, Alcoa's market cap was at $9.75 billion.
Price to Earnings (P/E) ratio was at 60.59.
The stock is part of the Basic Materials sector, categorized under the Aluminum industry.
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