U.S. markets closed
  • S&P 500

    4,145.19
    -6.75 (-0.16%)
     
  • Dow 30

    32,803.47
    +76.67 (+0.23%)
     
  • Nasdaq

    12,657.55
    -63.04 (-0.50%)
     
  • Russell 2000

    1,921.82
    +15.36 (+0.81%)
     
  • Crude Oil

    88.53
    -0.48 (-0.54%)
     
  • Gold

    1,792.40
    +1.20 (+0.07%)
     
  • Silver

    19.86
    +0.02 (+0.09%)
     
  • EUR/USD

    1.0180
    -0.0070 (-0.68%)
     
  • 10-Yr Bond

    2.8400
    +0.1640 (+6.13%)
     
  • GBP/USD

    1.2068
    -0.0090 (-0.74%)
     
  • USD/JPY

    135.1100
    +2.0940 (+1.57%)
     
  • BTC-USD

    23,304.50
    +107.64 (+0.46%)
     
  • CMC Crypto 200

    533.20
    -2.02 (-0.38%)
     
  • FTSE 100

    7,439.74
    -8.32 (-0.11%)
     
  • Nikkei 225

    28,175.87
    +243.67 (+0.87%)
     

Alcoa Shares Surge On Solid Q2 Results

  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Alcoa Corp (NYSE: AA) reported second-quarter revenue growth of 28.6% year-over-year to $3.64 billion, beating the consensus of $3.56 billion.

  • Adjusted EPS improved to $2.67, beating the consensus of $2.45.

  • Adjusted EBITDA increased by 47.7% Y/Y to $913 million and the margin expanded by 324 bps to 25.1%.

  • Aluminum segment revenue increased 6% with higher shipments and regional premiums. The average realized third-party price per metric ton of aluminum was $3,864 in Q2.

  • In Alumina, third-party shipments increased 7% sequentially. In Aluminum, shipments of commodity-grade aluminum were up 9% sequentially.

  • Alumina produced 3.23 million metric tons for the quarter, and Aluminum produced 499,000 metric tons, largely consistent with Q1 output.

  • Alcoa ended the quarter with cash on hand of $1.6 billion. Cash provided from operations was $536 million.

  • The company year-to-date has returned $387 million of capital to stockholders through $37 million in cash dividends and $350 million in share repurchases.

  • Q3 Outlook: Alcoa expects higher sequential profitability in the Bauxite segment with increased shipments as refinery demand improves in the third quarter. In Alumina and Aluminum, shipments are expected to increase.

  • It anticipates an approximately $20 million negative impact on net income in the third quarter as a result of the Warrick line curtailment.

  • FY22 Outlook: Alcoa expects total Aluminum segment shipments of 2.5 and 2.6 million metric tons, the same as prior guidance.

  • It decreased its projection for shipments to range between 13.6 and 13.8 million metric tons.

  • It expects annual bauxite shipments of 44 and 45 million dry metric tons, a change of 2 million dry metric tons.

  • Price Action: AA shares are trading higher by 7.23% at $48.32 during the post-market session on Wednesday.

See more from Benzinga

Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.