Kaiser Aluminum Crushes Q2 Estimates, Lifts FY Outlook on Strong Demand
KALU has more than doubled off its 52-week low of $71.44.
Summary
Kaiser Aluminum delivered a massive Q2 beat with sales of $1.25B vs. $1.12B consensus and adjusted net income of $94M vs. $36.77M expected. The company raised its full-year outlook, now guiding conversion revenue growth at the high end of 10-15% and adjusted EBITDA growth of 45-55%, driven by strong packaging mix, improving aerospace demand, and favorable metal price lag. This follows a robust Q1 and comes despite recent insider selling by the CEO. The stock, which closed at $164.37 on July 21, trades at 16x forward earnings with a median analyst target of $179. The magnitude of the beat and guidance raise is likely to force a re-rating, especially given the prior hold/sell consensus.
At the time of this announcement, KALU was trading at $171.00 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $2.7B. The 52-week trading range was $71.44 to $195.96. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.