Alcoa’s third-quarter results beat Street View to buy back $ 500 million of shares; Stock up to 5%

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(RTTNews) – Shares of Alcoa Corp. (AA) gained more than 5% in extended session Thursday after the aluminum producer reported third-quarter profit and revenue that beat Wall Street estimates, reflecting higher prices for aluminum and l alumina. The company also announced the launch of a quarterly dividend and a $ 500 million share buyback.

Pittsburgh-based Alcoa reported third-quarter profit of $ 337 million or $ 1.76 per share, compared with a loss of $ 49 million or $ 0.26 per share last year.

Excluding non-recurring items, profit for the quarter was $ 391 million or $ 2.05 per share, compared to the loss of $ 218 million or $ 1.17 per share last year. On average, 9 analysts polled by Thomson Reuters expected earnings of $ 1.80 per share.

Revenue for the quarter reached $ 3.11 billion from $ 2.37 billion a year ago. Analysts had a consensus revenue estimate of $ 2.93 billion. Revenue growth was driven by higher prices for aluminum and alumina as well as higher premiums for sales of value-added products.

“The strategic work we have implemented across our company has helped us effectively capitalize on very strong market fundamentals and have another great quarter with record profitability,” said Roy Harvey, President and Chief Executive Officer of Alcoa.

Alumina shipments fell to 2.43 million metric tonnes from 2.55 million metric tonnes last year. Aluminum shipments slipped to 722,000 metric tonnes from 767,000 metric tonnes last year. Bauxite shipments fell to 1.5 million dry metric tonnes from 1.6 million last year.

The average price per metric tonne of alumina increased to $ 312 from $ 274 last year, while the average price of aluminum rose to $ 3,124 per metric tonne from $ 1,904 per metric tonne per year. latest.

Looking ahead to 2021, Alcoa continues to expect a strong 2021 based on continued economic recovery and increased demand for aluminum in all end markets.

The company’s 2021 shipping outlook for the alumina and aluminum segments remains unchanged, with alumina projected between 14.1 and 14.2 million metric tonnes and aluminum between 2.9. and 3.0 million metric tonnes.

Alcoa also announced the launch of a quarterly cash dividend on its common shares and a new $ 500 million share repurchase program. The first quarterly cash dividend of $ 0.10 per share will be paid on November 19 to shareholders of record on October 29.

AA closed Thursday’s trading at $ 48.60, up $ 0.20 or 0.41%, on the NYSE. The stock also gained $ 2.54 or 5.23% in after-hours trading.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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