Despite analysts slashing third quarter bottom-line estimate on Alcoa Corporation (NYSE: AA) stock five times in the trailing quarter, the aluminum product manufacturer still failed to meet this target. For the third quarter, the company said it swung to a loss of 44 cents per share from a profit of 82 cents per share last year, also missing Wall Street projection of 33 cents per share.
On a reported basis, net loss per share widened to $1.19 from $0.03.
Hurt by lower alumina prices, revenue for the quarter fell 5% to $2.6 billion, which was in line with the street consensus.
Meanwhile, Alcoa announced that it intends to pursue non-core asset sales over the next 12 to 18 months, which is expected to generate an estimated $500 million to $1 billion in net proceeds. The company added that it is looking at a new operating model to create a leaner, more operator-centric organization.
“Global aluminum demand for full-year 2019 is now estimated to be lower year-over-year, ranging between -0.6% and -0.4%, compared to the previous quarter’s estimate of growth between 1.25% and 2.25%. The change is driven by weakening macroeconomic conditions, trade tensions, and contracting manufacturing activity, especially in the global automotive sector,” the company said in a statement.
READ: US Bancorp scores Q3 beat on consistent loan, deposit growth
Alcoa stock fell 0.6% immediately following the announcement.
Shares of Alcoa Corporation (NYSE: AA) have been on a downward trend for the past 18 months, and there seems to be little resistance to break the fall. Since the beginning of this year, the stock has lost a third of its value.
Alcoa has been facing multiple challenges, including low demand for its products and uncertainties from the US-China trade dispute. The management had earlier stated that global demand for aluminum will remain sluggish till the end of this year, primarily due to the oversupply of alumina in the Atlantic Basin.
Most Popular
What to look for when CVS Health (CVS) reports Q3 earnings
Healthcare company CVS Health Corporation (NYSE: CVS) is all set to report earnings next week, with Wall Street expecting a mixed outcome. The company has been facing challenges in certain
eBay (EBAY): A few factors that helped drive growth in Q3 2024
Shares of eBay Inc. (NASDAQ: EBAY) stayed green on Friday. The stock has gained 32% year-to-date. The ecommerce leader delivered revenue and earnings growth for the third quarter of 2024,
CVX Earnings: Chevron reports lower revenue and profit for Q3 2024
Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to