We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Arconic's (ARNC) Earnings and Sales Trounce Estimates in Q2
Read MoreHide Full Article
Arconic Inc. logged profits (as reported) of $120 million or 24 cents per share for the second quarter of 2018, down from $212 million or 43 cents a year ago.
Barring one-time items, adjusted earnings came in at 37 cents per share for the reported quarter, which topped the Zacks Consensus Estimate of 29 cents.
Arconic reported revenues of $3,573 million, up around 10% year over year, exceeding the Zacks Consensus Estimate of $3,475 million. Organic revenues rose 5% year over year on the back of increased volumes across commercial transportation, automotive, aerospace engines, defense and building & construction markets.
Engineered Products and Solutions: Revenues from the division came in at $1.6 billion for the reported quarter, up 7% year over year. Organic revenues for the segment rose 6%, supported by growth in aerospace engines and defense.
Operating profit for the segment fell 15% year over year, impacted by unfavorable physical inventory adjustment, continued challenges in Rings and Disks and unfavorable product mix.
Global Rolled Products: The division recorded sales of $1.5 billion in the quarter, up 14% year over year.
Operating profit for the segment, however, declined roughly 8% year over year due to unfavorable aerospace wide-body production mix and increased aluminum prices.
Transportation and Construction Solutions: The segment logged sales of $562 million, up 12% year over year.
Operating profit climbed 37% on the back of higher volume in commercial transportation and building & construction and cost savings.
Financial Position
Arconic ended the quarter with cash and cash equivalents of roughly $1,455 million, down around 22% year over year. Long-term debt fell roughly 22% year over year to $6,312 million.
Adjusted free cash flow doubled year over year to $289 million in the second quarter.
Outlook
Arconic reaffirmed its guidance for the full year. The company continues expect revenues for 2018 in the range of $13.7 billion to $14 billion. It also continues to expect adjusted earnings in the range of $1.17-$1.27 per share and adjusted free cash flow of around $250 million.
Price Performance
Arconic's shares have lost 15.9% over the past year, underperforming the 5.6% growth of the industry it belongs to.
KMG Chemicals has an expected long-term earnings growth rate of 28.5%. Its shares have gained roughly 39% over a year.
Methanex has an expected long-term earnings growth rate of 15%. The company’s shares have rallied around 53% in a year.
Celanese has an expected long-term earnings growth rate of 10%. Its shares have shot up roughly 20% over a year.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6% and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
Arconic's (ARNC) Earnings and Sales Trounce Estimates in Q2
Arconic Inc. logged profits (as reported) of $120 million or 24 cents per share for the second quarter of 2018, down from $212 million or 43 cents a year ago.
Barring one-time items, adjusted earnings came in at 37 cents per share for the reported quarter, which topped the Zacks Consensus Estimate of 29 cents.
Arconic reported revenues of $3,573 million, up around 10% year over year, exceeding the Zacks Consensus Estimate of $3,475 million. Organic revenues rose 5% year over year on the back of increased volumes across commercial transportation, automotive, aerospace engines, defense and building & construction markets.
Arconic Inc. Price, Consensus and EPS Surprise
Arconic Inc. Price, Consensus and EPS Surprise | Arconic Inc. Quote
Segment Highlights
Engineered Products and Solutions: Revenues from the division came in at $1.6 billion for the reported quarter, up 7% year over year. Organic revenues for the segment rose 6%, supported by growth in aerospace engines and defense.
Operating profit for the segment fell 15% year over year, impacted by unfavorable physical inventory adjustment, continued challenges in Rings and Disks and unfavorable product mix.
Global Rolled Products: The division recorded sales of $1.5 billion in the quarter, up 14% year over year.
Operating profit for the segment, however, declined roughly 8% year over year due to unfavorable aerospace wide-body production mix and increased aluminum prices.
Transportation and Construction Solutions: The segment logged sales of $562 million, up 12% year over year.
Operating profit climbed 37% on the back of higher volume in commercial transportation and building & construction and cost savings.
Financial Position
Arconic ended the quarter with cash and cash equivalents of roughly $1,455 million, down around 22% year over year. Long-term debt fell roughly 22% year over year to $6,312 million.
Adjusted free cash flow doubled year over year to $289 million in the second quarter.
Outlook
Arconic reaffirmed its guidance for the full year. The company continues expect revenues for 2018 in the range of $13.7 billion to $14 billion. It also continues to expect adjusted earnings in the range of $1.17-$1.27 per share and adjusted free cash flow of around $250 million.
Price Performance
Arconic's shares have lost 15.9% over the past year, underperforming the 5.6% growth of the industry it belongs to.
Zacks Rank & Other Stocks to Consider
Arconic currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include KMG Chemicals, Inc. , Methanex Corp. (MEOH - Free Report) and Celanese Corp. (CE - Free Report) each carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
KMG Chemicals has an expected long-term earnings growth rate of 28.5%. Its shares have gained roughly 39% over a year.
Methanex has an expected long-term earnings growth rate of 15%. The company’s shares have rallied around 53% in a year.
Celanese has an expected long-term earnings growth rate of 10%. Its shares have shot up roughly 20% over a year.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6% and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>