Alcoa Corp (NYSE:AA) reported third-quarter earnings that surpassed expectations, but its shares dropped by nearly 4% intra-day today. The aluminum producer benefitted from increased alumina prices and lower raw material costs, underscoring a profitable quarter.
Alcoa posted an EPS of $0.57, outpacing Wall Street analyst projections of $0.28. While revenue fell slightly short at $2.9 billion against an expected $2.97 billion, it remained stable compared to the prior quarter. Year-over-year, Alcoa’s revenue climbed by 11.6%, rising from $2.6 billion in the same period last year.
The company reported a significant increase in net income, reaching $90 million, or $0.38 per share, compared to $20 million, or $0.11 per share, in the previous quarter. Adjusted EBITDA, excluding special items, rose to $455 million, marking a $130 million quarter-over-quarter increase.
Alcoa’s President and CEO, William F. Oplinger, attributed the strong quarter to favorable market conditions and ongoing operational improvements, noting the company’s continued focus on boosting efficiencies.
Looking forward, Alcoa reaffirmed its production outlook for 2024 in its Alumina and Aluminum segments. The company raised its Alumina shipment forecast, expecting a range of 12.9 to 13.1 million metric tons, reflecting an upward adjustment of 0.2 million metric tons from prior guidance.