Alcoa (NYSE:AA) shares are rallying in the premarket session today after the bauxite, alumina, and aluminum products provider announced promising preliminary numbers for the second quarter. The company is slated to report its Q2 numbers on July 17.
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Alcoa’s Preliminary Q2 Numbers
The company’s preliminary numbers point to sequential gains across its revenue, net income, and adjusted EBITDA. The company estimates revenue of $2.85 billion to $2.92 billion for the quarter. That’s a substantial jump over its Q1 top line of $2.6 billion. Moreover, its adjusted EBITDA is expected to land in the range of $310 million to $330 million. Alcoa’s adjusted EBITDA in the prior quarter stood at $132 million.
The miner expects its adjusted EPS for Q2 to be in the range of $0.08 to $0.19. In comparison, it had clocked a net loss per share of $0.81 in Q1. These results come on the back of improving trends in the commodities market. Prices of a number of commodities have been displaying strength in recent times, and the trend is largely expected to continue over the remainder of 2024.
Key Event to Keep an Eye on
Furthermore, Alcoa’s special shareholder meeting on July 16 is a key event to keep an eye on. Investors can expect further details regarding Alcoa’s recent acquisition of Alumina Ltd. at the meeting. Alcoa has received all necessary regulatory approvals for the transaction and expects the deal to close on or about August 1.
Is AA Stock a Buy, Sell, or Hold?
Overall, the Street has a Moderate Buy consensus rating on Alcoa, alongside an average AA price target of $43.14. However, analysts’ views on the stock could see a revision following its preliminary Q2 numbers.
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