Alcoa Shares Fall After Q1 Results Miss Revenue Expectations, Production Decrease - Alcoa (NYSE:AA)

Alcoa Corp AA reported first-quarter revenue growth of 14.7% year-over-year to $3.29 billion, missing the consensus of $3.44 billion.
Adjusted EPS improved to $3.06, beating the consensus of $2.97.
Adjusted EBITDA doubled to $1.07 billion (+105.8% Y/Y), and the margin expanded by 1,440 bps to 32.5%.
Aluminum segment, revenue increased 3% sequentially due to strong market pricing. The average realized price for primary aluminum increased 14% sequentially to $3,861 per metric ton.
Primary aluminum production decreased 10% sequentially on the curtailment of the San Ciprián smelter and fewer days in the quarter.
AA’s cash generated from operating activities for the quarter was $34 million, compared to $6 million a year ago. Free Cash outflow was $(40) million.
The company repurchased $75 million in shares of common stock and paid $18 million in cash dividends. It has a cash balance of $1.6 billion at the end of the quarter.
2Q22 Outlook: Alcoa expects both alumina and aluminum realized third-party prices to be higher than the first quarter, with that benefit partly offset by ~$115 million of higher energy and raw materials costs.
It expects second-quarter tax expense to be ~$220 million to $230 million.
FY22 Outlook: Alcoa decreased its projection for bauxite shipments by 2 million dry metric tons to 46.0 and 47.0 million dry metric tons.
It expects total alumina and aluminum shipments to remain unchanged between 14.2 and 14.4 million metric tons and between 2.5 and 2.6 million metric tons.
Price Action: AA shares are trading lower by 4.57% at $82.95 during the post-market session on Wednesday.
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