Earnings Review and Free Research Report: Alcoa’s Q3 Revenue Grew 27% Y-o-Y on Higher Prices
Research Desk Line-up: Kaiser Aluminum Post Earnings Coverage
LONDON, UK / ACCESSWIRE / October 23, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Alcoa Corp. (NYSE: AA), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=AA, following the Company's posting of its third quarter fiscal 2017 (Q3 FY17) earnings results on October 18, 2017. The Pittsburgh, Pennsylvania-based Company's revenue grew 27% y-o-y, beating Wall Street's estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Aluminum industry. Pro-TD has currently selected Kaiser Aluminum Corporation (NASDAQ: KALU) for due-diligence and potential coverage as the Company announced on October 18, 2017, its financial results for Q3 2017. Register for a free membership today, and be among the early birds that get access to our report on Kaiser Aluminum when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on AA; also brushing on KALU. With the links below you can directly download the report of your stock of interest free of charge at:
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Earnings Reviewed
During Q3 FY17, Alcoa reported revenues of $2.96 billion, up from $2.33 billion in Q3 FY16. The revenue numbers topped market expectations of $2.93 billion. The Company attributed the growth in revenues to higher alumina and aluminum prices.
The aluminum manufacturing Company reported net income of $113 million, or $0.60 per diluted share, in Q3 FY17 versus a net loss of $10 million, or $0.06 loss per diluted share, in the prior year's comparable quarter. The Company attributed the rise in net income to higher business segment earnings. Meanwhile, the Company reported an adjusted net income of $135 million, or $0.72 per diluted share, in Q3 FY17 compared to an adjusted net loss of $95 million, or $0.52 loss per diluted share, in the year-ago comparable quarter. Furthermore, Wall Street had expected the Company to report adjusted net income of $0.74 per diluted share.
Operating Metrics
In Q3 FY17, Alcoa's cost of goods sold increased to $2.36 billion from $1.97 billion in the year-ago corresponding quarter. The Company's selling, general, administrative, and other expenses declined to $70 million from $92 million in the year ago same period. The Company's income before income taxes stood at $288 million in Q3 FY17 versus $102 million in Q3 FY16. Furthermore, the Company reported adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) of $619 million in Q3 FY17 compared to $358 million in Q3 FY16.
Segments Results
During Q3 FY17, the Company's bauxite production was 11.6 million of dry metric tons (mdmt) compared to 11.4 mdmt in Q3 FY16. Total shipments was 12.3 million mdmt during the reported quarter compared to 11.7 mdmt in the prior year's same quarter. Furthermore, the segment's adjusted EBITDA increased to $113 million in Q3 FY17 from $97 million in Q3 FY16.
Alcoa's alumina production volume was 3,305 kilo metric ton (kmt) in Q3 FY17 versus 3,310 kmt in Q3 FY16. Third-party shipments decreased to 2,271 kmt from 2,361 kmt in Q3 FY16. Intersegment shipments were $1,153 kmt million during Q3 FY17 compared to 1,140 kmt in the last year's corresponding quarter. Additionally, the Company's adjusted EBITDA was $203 million in Q3 FY17, up from $78 million in Q3 FY16.
Aluminum primary production volume was 596 kmt during Q3 FY17 compared to 586 kmt in Q3 FY16. Third-party aluminum shipments were 868 kmt in Q3 FY17 versus 761 kmt in Q3 FY16. The segment's adjusted EBITDA was $303 million for Q3 FY17, up from $183 million in the last year's comparable quarter.
Cash Flow and Balance Sheet
In the three months ended September 30, 2017, net cash generated by operating activities was $384 million versus $311 million in the prior quarter of the same fiscal year. The Company reported free cash flow of $288 million for Q3 FY17 compared to $223 million in Q2 FY17.
As on September 30, 2017, cash and cash equivalents balance stood at $1.12 billion compared to $853 million as on December 31, 2016. Additionally, long-term debt was $1.38 billion as on September 30, 2017, compared to $1.42 billion as on December 31, 2016.
Earnings Outlook
Taking clue from stronger alumina and aluminum prices, the Company raised its adjusted EBITDA guidance to approximately $2.4 billion for the full-year FY17.
Stock Performance
At the closing bell, on Friday, October 20, 2017, Alcoa's stock climbed 2.99%, ending the trading session at $47.93. A total volume of 4.21 million shares have exchanged hands, which was higher than the 3-month average volume of 3.75 million shares. The Company's stock price skyrocketed 30.64% in the last three months, 43.89% in the past six months, and 128.24% in the previous twelve months. Moreover, the stock soared 70.69% since the start of the year. The stock is trading at a PE ratio of 32.74 and currently has a market cap of $8.58 billion.
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