Free Post Earnings Research Report: Arconic’s Quarterly Revenue Jumped 10%; Beats Expectations
Stock Monitor: Century Aluminum Post Earnings Reporting
LONDON, UK / ACCESSWIRE / February 27, 2018 / Active-Investors.com has just released a free earnings report on Arconic Inc. (NYSE: ARNC). 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=ARNC. Arconic reported its fourth quarter fiscal 2017 operating and financial results on February 05, 2018. The engineered and aluminum products Company topped earnings expectation and provided guidance for FY18. 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, Arconic 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
Arconic recorded fourth quarter 2017 revenue of $3.27 billion, up 10% compared to revenue of $3.24 billion, driven by higher volumes across all segments and higher aluminum prices. The Company's reported numbers exceeded analysts' estimates of $3.07 billion.
For full year (FY) 2017, Arconic's revenue grew 5% to $12.96 billion compared to $12.39 billion in FY16, driven by higher volumes across all segments and higher aluminum prices.
During Q4 2017, Arconic's consolidated adjusted before interest, tax, depreciation, and amortization (EBITDA) was $436 million, up 54% on a y-o-y basis. During Q4 2017 Arconic delivered net cost savings of $68 million, or 2.1% of revenue, and for FY17, net cost savings of $232 million, or 1.8% of revenue.
Net loss attributable to Arconic was $727 million, or $1.51 per share, in Q4 2017 compared to net income of $119 million, or $0.23 per diluted share, in Q4 2016. The Company's reported quarter results included $879 million in special items, principally due to impairments of goodwill in the forgings and extrusions business and assets in the Latin America extrusions business, the impact of US tax reform, and reduction of liabilities for a contingent earn-out and a separation-related guarantee.
Excluding special items, Arconic's adjusted net income was $152 million, or $0.31 per share, in Q4 2017 driven by net cost savings and higher volumes, which were partially offset by unfavorable product pricing and mix. The Company's earnings beat Wall Street's estimates of $0.24 per share.
For FY17, the Company reported 2017 net loss attributable to Arconic of $74 million, or $0.28 per share, compared to $941 million, or $2.31 per share, in FY16. Excluding the impact of special items, Arconic's adjusted income was $618 million, or $1.22 per share.
Arconic's Segment Performance
During Q4 2017, the Engineered Products and Solutions (EP&S) segment's revenue grew 6% to $1.5 billion on a y-o-y basis. The segment's adjusted earnings EBITDA was $296 million compared to $265 million in the prior year's corresponding quarter. EP&S adjusted EBITDA margin was 19.9%, up 110 basis points y-o-y.
For Q4 2017, the Global Rolled Products (GRP) segment's revenue advanced 15% to $1.24 billion on a y-o-y basis compared to $1.08 billion in Q4 2016. The segment's adjusted EBITDA was $124 million versus $116 million in the year earlier same quarter, driven by strong automotive volume and net cost savings. GRP's adjusted EBITDA margin was 10.0% for Q4 2017, down 80 basis points y-o-y, driven by a 160-basis point negative impact of higher aluminum prices.
The Transportation and Construction Solutions (TCS) division delivered revenue of $518 million in Q4 2017, reflecting an increase of 14% compared to revenue of $456 million. The segment's adjusted EBITDA was $84 million in the reported quarter versus $75 million in the year ago same period, as higher volume and cost reductions more than offset headwinds, including unfavorable price and mix and higher aluminum prices. Adjusted EBITDA margin was 16.2%, down 20 basis points y-o-y.
Cash Matters
During Q4 2017, Arconic's cash from operations was $612 million and free cash flow was $376 million. In FY17, the Company redeemed $1.25 billion of debt, ending the year with debt of $6.8 billion and cash on hand of $2.15 billion. Arconic's cash from operations in FY17 was $701 million, while free cash flow was $105 million.
Arconic's Board of Directors authorized a share repurchase program of up to $500 million of its outstanding common stock and a $500 million early debt reduction.
Arconic stated that it intends to redeem in March 2018 all of its outstanding 5.72% Notes due in 2019 in accordance with the terms of the notes and the Indenture, dated as of September 30, 1993, between Arconic and The Bank of New York Mellon Trust Company, N.A. as trustee. As of February 05, 2018, the aggregate outstanding principal amount of the Notes was $500 million.
Outlook
For FY18, Arconic is forecasting adjusted earnings in the range of $1.45 to $1.55 per share, and revenue of $13.4 billion to $13.7 billion.
Stock Performance Snapshot
February 26, 2018 - At Monday's closing bell, Arconic's stock ended the trading session flat at $25.13.
Volume traded for the day: 2.52 million shares.
Stock performance in the previous three-month period – up 5.81%
After yesterday's close, Arconic's market cap was at $11.81 billion.
The stock has a dividend yield of 0.96%.
The stock is part of the Basic Materials sector, categorized under the Aluminum industry. This sector was up 0.7% at the end of the session.
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