Categories Earnings, Other Industries

Alcoa misses Q3 bottom-line by 11 cents, mulls asset sale

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.

Aluminum trends hurt Alcoa Q2 2019 results
Photo Courtesy: Alcoa / Facebook post

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.

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

Most Popular

V Earnings: Key quarterly highlights from Visa’s Q1 2023 financial results

Visa Inc. (NYSE: V) reported first quarter 2023 earnings results today. Net revenues grew 12% year-over-year to $7.9 billion. GAAP net income rose 6% to $4.2 billion while EPS grew

Earnings: Highlights of Intel’s (INTC) Q4 2022 financial results

Intel Corporation (NASDAQ: INTC) Thursday reported a decline in adjusted earnings and revenues for the fourth quarter. The semiconductor giant also provided guidance for the first quarter of 2023. Fourth-quarter

McCormick (MKC) expects to drive sales growth in 2023 through pricing actions and cost savings

Shares of McCormick & Company Inc. (NYSE: MKC) were down over 5% on Thursday after the company missed expectations on its fourth quarter 2022 results and provided a lower-than-expected earnings

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top