Alcoa shares rise over 2% on revenue beat

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Alcoa shares rise over 2% on revenue beat
Credit: © Reuters.

PITTSBURGH - Alcoa Corporation (NYSE: NYSE: AA ), a leader in bauxite, alumina, and aluminum products, reported a first-quarter 2024 adjusted loss per share of -$0.81, falling short of analyst expectations by $0.19.

Despite the earnings miss, the company's revenue outperformed consensus estimates, coming in at $2.6 billion against an anticipated $2.56 billion. This revenue beat, alongside a positive market reaction with shares climbing 2.28%, indicates investor confidence in the company's financial performance.

The reported revenue, however, represents a slight decrease from the $2.67 billion generated in the same quarter last year, reflecting a YoY dip of approximately 2.6%. Alcoa's net loss attributable to the corporation widened to -$252 million, or -$1.41 per share, compared to last year's first-quarter net loss of -$231 million, or -$1.30 per share.

Alcoa President and CEO William F. Oplinger commented on the quarter's results, highlighting strategic acquisitions and operational improvements. "In the first quarter of 2024, we finalized the terms of our acquisition of Alumina (OTC: AWCMY ) Limited, which will bring strategic, operational, and financial flexibility," said Oplinger. "Raw material prices and markets are improving, and we are implementing near-term improvements to further strengthen Alcoa for the future."

Looking ahead, Alcoa provided guidance for the second quarter and full year of 2024. The company anticipates sequential unfavorable impacts in the Alumina Segment's Adjusted EBITDA due to higher seasonal maintenance and mining costs in Australia. In contrast, favorable raw material prices and production costs in the Aluminum Segment are expected to be offset by higher energy costs. The company's interest expense for the year is projected to be around $145 million, an increase following the issuance of a green bond.

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