Alcoa Jumps 5.8% as Q3 Profit Doubles, Aluminum Prices Surge 34%
AA sits 22% above its 52-week low of $35.12.
Summary
Alcoa's Q3 GAAP earnings more than doubled to $483M ($1.81/share) from $232M a year ago, and adjusted EPS of $1.82 beat by $0.31. Revenue rose 24% Y/Y to $3.7B but missed by $60M, while adjusted EBITDA exploded to $789M from $270M. The aluminum segment drove the beat: production rose 12% to 649K tons, shipments climbed 13% to 693K tons, and the average realized price surged 34% to $4,527/metric ton. Alumina was the drag — shipments fell 25% and realized prices slipped 6.4%. Shares rallied 5.8% on the print. Management reiterated full-year production and shipment guidance and said momentum should carry through year-end, with CEO Oplinger noting global inventories remain historically low at ~42 days of consumption. This follows the $4.1B South32 acquisition financing completed in September, with the South32 shareholder vote on the asset sale set for October 15.
At the time of this announcement, AA was trading at $42.72 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $11.3B. The 52-week trading range was $35.12 to $84.38. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.