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Arconic's (ARNC) Earnings Top, Sales Miss Estimates in Q1

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Arconic Inc. logged profits (as reported) of $187 million or 39 cents per share in first-quarter 2019, up from $143 million or 29 cents in the prior-year quarter.

Barring one-time items, adjusted earnings per share came in at 43 cents. The figure beat the Zacks Consensus Estimate of 40 cents.

Arconic generated revenues of $3,541 million, up around 2.8% year over year. It missed the Zacks Consensus Estimate of $3,546 million.

Arconic Inc. Price, Consensus and EPS Surprise

 

Arconic Inc. Price, Consensus and EPS Surprise | Arconic Inc. Quote

Segment Highlights

Engineered Products and Solutions (EP&S): Revenues in the division totaled $1.5 billion, up 5% year over year. Organic revenues in the segment rose 7%, which were supported by volume growth in aerospace engines and defense.

Global Rolled Products (GRP): Revenues in the division amounted to $1.5 billion in the quarter, up 1% year over year. Organic revenues in the segment rose 10%.

Transportation and Construction Solutions (TCS): Revenues in the segment were $535 million, flat year over year. Organic revenues in the segment rose 7%.

Financial Position

As of Mar 31, 2019, Arconic had cash and cash equivalents of roughly $1,319 million, up around 9.5% year over year. Long-term debt fell roughly 6.5% year over year to $5,899 million.

Cash used for operations was $258 million in the quarter.

Outlook

Arconic provided updated full-year 2019 guidance. The company expects revenues in the range of $14.3-$14.6 billion.  Adjusted earnings are expected in the range of $1.75-$1.90 per share. Adjusted free cash flow is projected between $650 million and $750 million.

Price Performance

Arconic's shares have gained 19.3% in the past year against the industry’s 19.7% decline.



Zacks Rank & Other Key Picks

Arconic currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the basic materials space include Sandstorm Gold Ltd. (SAND - Free Report) , Flexible Solutions International Inc (FSI - Free Report) and W. R. Grace & Co .

Sandstorm Gold has an expected earnings growth rate of 200% for the current year and sports a Zacks Rank #1 (Strong Buy). The company’s shares have gained around 12.6% in the past year.   You can see the complete list of today’s Zacks #1 Rank stocks here.

Flexible Solutions has an expected earnings growth rate of 171.4% for the current year and carries a Zacks Rank #2. Its shares have surged roughly 102.2% in the past year.

W. R. Grace has an expected earnings growth rate of 10.4% for the current year and carries a Zacks Rank #2. Its shares have gained around 9.8% in the past year.

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