PITTSBURGH - Alcoa Corporation (NYSE: NYSE:AA) today reported a notable beat on second-quarter earnings, with adjusted EPS of $0.16 surpassing the $0.06 analyst consensus. Revenue also exceeded expectations, reaching $2.91 billion against the forecasted $2.85 billion. The results reflect a robust market for alumina and aluminum, with prices driving the revenue surge.
AA stock was up 1.8% following the release.
The company's financial performance marked a significant turnaround from the previous quarter's losses, showcasing a sequential revenue increase of 12%. Net income attributable to Alcoa Corporation stood at $20 million, or $0.11 per share, a substantial recovery from the first quarter's loss of $252 million, or -$1.41 per share, and the prior-year quarter's loss of $102 million, or -$0.57 per share.
Adjusted EBITDA excluding special items soared to $325 million, a sharp increase from the $132 million reported in the first quarter and $137 million year-over-year (YoY). This improvement was attributed to higher average realized prices for alumina and aluminum, coupled with lower production and raw material costs, partially offset by escalated energy costs.
Alcoa's President and CEO, William F. Oplinger, credited the company's continuous improvement initiatives and favorable market conditions for the strengthened results. "Our focus on operational excellence and strategic initiatives has positioned us to capitalize on the current market dynamics, leading to a solid quarter," Oplinger commented.
Looking ahead, Alcoa provided guidance for the third quarter of 2024, expecting operational tax expenses to range between $60 million and $70 million. The company also anticipates an increase in interest expense by approximately $5 million due to the acquisition of Alumina (OTC:AWCMY) Limited debt.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.