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Alcoa's (AA) Q4 Earnings Trail Estimates, Revenues Top
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Alcoa Corporation (AA - Free Report) logged a net loss of $125 million or 68 cents per share for the fourth quarter of 2016. The results include one-time items mainly associated with the closure of Suralco alumina refinery and mines in Suriname and the impairment of Alcoa of Australia Limited’s interests in a Western Australia gas field.
Barring one-time items, adjusted earnings came in at 14 cents per share for the reported quarter, missing the Zacks Consensus Estimate of 22 cents.
Revenues for the quarter were $2,537 million, coming ahead of the Zacks Consensus Estimate of $2,211 million. Alcoa gained from higher alumina and aluminum prices and increased volumes in its rolled products business in the quarter.
This is the company’s first quarterly report as a standalone, publicly traded company. The separation of the former parent company Alcoa Inc. into two independent, publicly traded companies – Arconic Inc. and Alcoa Corporation – was completed and became effective on Nov 1, 2016. Alcoa Inc. changed its name to Arconic Inc. on Oct 31, 2016.
Alcoa remained focused on building its third-party bauxite business and streamlining its portfolio during the fourth quarter. The company clinched its first major bauxite export contract out of Western Australia during the quarter. It also announced the permanent closure of the Suralco refinery and bauxite mines in Suriname. Alcoa was also granted approval to export up to 2.5 million metric tons of bauxite annually for five years to third-party customers.
Financials
Alcoa ended the quarter with cash and cash equivalents of $853 million. Long-term debt was roughly $1.4 billion as of Dec 31, 2016.
Outlook
Moving ahead, Alcoa sees relatively balanced global bauxite and alumina markets and a modest global aluminum surplus of 400,000 to 800,000 metric tons for 2017. The company expects global aluminum demand growth of 4% year over year in 2017.
Price Performance
Alcoa has outperformed the Zacks categorized Metal Products - Distributor industry over the past three months. The company’s shares have gained around 63% over this period, compared with roughly 24.5% decline recorded by the industry.
BHP Billiton has an expected long-term growth of 5.6%.
Teck Resources has an expected long-term growth of 10.7%.
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Alcoa's (AA) Q4 Earnings Trail Estimates, Revenues Top
Alcoa Corporation (AA - Free Report) logged a net loss of $125 million or 68 cents per share for the fourth quarter of 2016. The results include one-time items mainly associated with the closure of Suralco alumina refinery and mines in Suriname and the impairment of Alcoa of Australia Limited’s interests in a Western Australia gas field.
Barring one-time items, adjusted earnings came in at 14 cents per share for the reported quarter, missing the Zacks Consensus Estimate of 22 cents.
Revenues for the quarter were $2,537 million, coming ahead of the Zacks Consensus Estimate of $2,211 million. Alcoa gained from higher alumina and aluminum prices and increased volumes in its rolled products business in the quarter.
This is the company’s first quarterly report as a standalone, publicly traded company. The separation of the former parent company Alcoa Inc. into two independent, publicly traded companies – Arconic Inc. and Alcoa Corporation – was completed and became effective on Nov 1, 2016. Alcoa Inc. changed its name to Arconic Inc. on Oct 31, 2016.
Alcoa Corp. Price, Consensus and EPS Surprise
Alcoa Corp. Price, Consensus and EPS Surprise | Alcoa Corp. Quote
Business Update
Alcoa remained focused on building its third-party bauxite business and streamlining its portfolio during the fourth quarter. The company clinched its first major bauxite export contract out of Western Australia during the quarter. It also announced the permanent closure of the Suralco refinery and bauxite mines in Suriname. Alcoa was also granted approval to export up to 2.5 million metric tons of bauxite annually for five years to third-party customers.
Financials
Alcoa ended the quarter with cash and cash equivalents of $853 million. Long-term debt was roughly $1.4 billion as of Dec 31, 2016.
Outlook
Moving ahead, Alcoa sees relatively balanced global bauxite and alumina markets and a modest global aluminum surplus of 400,000 to 800,000 metric tons for 2017. The company expects global aluminum demand growth of 4% year over year in 2017.
Price Performance
Alcoa has outperformed the Zacks categorized Metal Products - Distributor industry over the past three months. The company’s shares have gained around 63% over this period, compared with roughly 24.5% decline recorded by the industry.
Zacks Rank & Key Picks
Alcoa is a Zacks Rank #3 (Hold).
Better-ranked companies in the basic materials space include BHP Billiton Limited (BHP - Free Report) and Teck Resources Limited (TECK - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BHP Billiton has an expected long-term growth of 5.6%.
Teck Resources has an expected long-term growth of 10.7%.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>