Alcoa’s Q4 Earnings Report: Surpassing EPS Expectations, Missing on Adjusted EBITDA
Alcoa (NYSE: AA) recently released its Q4 2023 earnings, revealing that while the company’s earnings per share (EPS) exceeded expectations, adjusted EBITDA fell significantly short of the mark. This mixed bag of results had a negative impact on Alcoa’s stock performance, with shares falling over 2.7% in after-hours trading.
After-Hours Trading: Alcoa Shares Drop Over 2.7%
Following the release of Alcoa’s Q4 earnings report, the stock experienced a decline of more than 2.7% in after-hours trading. Investors reacted to the disappointment surrounding the company’s adjusted EBITDA figures, which fell below Wall Street’s expectations.
Alcoa’s Q4 Revenue in Line with Consensus Projection at $2.6B
Alcoa reported a fourth-quarter revenue of $2.6 billion, meeting the consensus projection from analysts. This revenue figure indicates stable performance for the company during the period, as it aligns with the market expectations.
Alcoa’s Q4 Adjusted EBITDA Falls Short, Disappointing Wall Street
Despite meeting revenue projections, Alcoa’s adjusted EBITDA for Q4 fell short of Wall Street’s expectations. The company reported an adjusted EBITDA of $89 million, compared to the anticipated figure of $110.7 million. While Alcoa saw an increase in adjusted EBITDA from the previous year, with aluminum adjusted EBITDA reaching $88 million, it was still lower than the analysts’ expectations of $97.8 million.
Alcoa Forecasts Negative Effects on Alumina Segment’s Q1 Adjusted EBITDA
Looking ahead, Alcoa anticipates negative effects on the Alumina Segment’s adjusted EBITDA in Q1 of 2024. The company expects around $15 million in negative impacts due to increased maintenance expenses and reduced shipments in Australia. Additionally, any benefits derived from decreased costs in raw materials and energy are projected to be offset by other factors during this period.
In conclusion, Alcoa’s Q4 earnings report showcased a performance that was somewhat mixed. While the company surpassed expectations in terms of earnings per share, its adjusted EBITDA figures fell short of the mark. These results have already impacted the company’s stock performance in after-hours trading. As Alcoa looks ahead to Q1 of 2024, it foresees challenges for the Alumina Segment’s adjusted EBITDA due to increased maintenance expenses and reduced shipments.
Analyst comment
Positive: Alcoa’s Q4 revenue met consensus projections, indicating stable performance.
Negative: Alcoa’s adjusted EBITDA fell short of expectations, disappointing Wall Street and leading to a decline in stock performance.
Neutral: Alcoa foresees negative effects on the Alumina Segment’s adjusted EBITDA in Q1 2024 due to increased maintenance expenses and reduced shipments.
As an analyst, I expect Alcoa’s stock to face challenges in the near term due to the disappointment surrounding its adjusted EBITDA figures. The negative effects on the Alumina Segment’s adjusted EBITDA in Q1 2024 may further impact the company’s financial performance.
