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Alcoa Corp. (AA) Stock Up on Q1 Earnings Beat

Benjamin Rains

Alcoa Corp. AA just released its first quarter 2017 financial results, posting earnings of $0.63 per share and revenues of $2.66 billion. Currently, Alcoa is a Zacks Rank #3 (Hold), and is up 2.55% to $34.16 per share in after-hours trading shortly after its earnings report was released.

Alcoa:

Beat earnings estimates. The company posted earnings of $0.63 per share (excluding $0.58 from non-recurring items), topping the Zacks Consensus Estimate of $0.55 per share.

Missed revenue estimates. The company saw revenue figures of $2.66 billion, missing our consensus estimate of $2.97 billion.

Alcoa reported first quarter 2017 revenue of $2.66 billion, up 5% sequentially. The company posted an adjusted EBITDA, excluding special items, of $533 million, which is up 59% from the fourth quarter. Higher alumina and aluminum pricing helped account for the increased revenue and EBITDA.

Alcoa reported first quarter net income of $225 million, which included $108 million of special items bolstered by the sale of the Yadkin Hydroelectric Project. The company had a net loss of $125 million in the fourth quarter of 2016, which included new streamlining costs.

Alcoa currently projects that demand for aluminum globally will grow by 4.5% to 5% in 2017. The company’s original full-year 2017 expectations are unchanged, with adjusted EBITDA, excluding special items, projected to sit between $2.1 billion and $2.3 billion.

“Alcoa is off to a strong start with our first full quarter as an independent company,” Alcoa CEO Roy Harvey said in a press release. “In our Bauxite segment, our third-party business remained strong and we continued to grow profits, while our Alumina and Aluminum segments captured the benefits of improved market pricing to increase earnings substantially.”

“Over the last few months, we also remained focused on our strategic priorities. To reduce complexity, we consolidated our business units and administrative locations; we began to put our return seeking capital to work across our businesses to drive returns, and we continued to strengthen the balance sheet by maintaining a healthy level of cash on hand. As we look forward to the rest of 2017, we are well positioned to deliver value to our stockholders.”

Here’s a graph that looks at Alcoa’s Price, Consensus and EPS Surprise history:

Alcoa Corp. Price, Consensus and EPS Surprise

Alcoa Corp. Price, Consensus and EPS Surprise | Alcoa Corp. Quote

Alcoa is a global industry leader in bauxite, alumina and aluminum products.

Check back later for our full analysis on Alcoa’s earnings report!

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