Alcoa Shares Are Sliding: What's Going On?

Alcoa Corp AA shares are trading lower Thursday after the company reported fourth-quarter results and warned of pricing declines. Several analysts adjusted price targets on the stock following the company's quarterly results.

What Happened: Alcoa reported fourth-quarter revenue of $2.7 billion, which beat average analyst estimates of $2.65 billion, according to Benzinga Pro. The company said fourth-quarter revenues declined 7% sequentially.

Alcoa reported a quarterly net loss of 70 cents per share, which beat average analyst estimates for a loss of 75 cents per share.

Alcoa said it faced challenging market conditions throughout the year that included high costs for raw materials and energy and lower sequential pricing in the Alumina and Aluminum segments in the fourth quarter.

"Last year, global turbulence negatively influenced costs for energy and raw materials, and we saw significant variance on product pricing between the first and second halves of 2022," said Roy Harvey, president and CEO of Alcoa.

Alcoa expects total alumina shipments to range between 12.7 and 12.9 million metric tons in 2023, representing a decrease of 0.5 million metric tons from 2022. The Aluminum segment is expected to ship between 2.5 and 2.6 million metric tons, consistent with 2022.

See Also: Why Huadi International Group (HUDI) Stock Is Rising

Analyst Assessment:

  • BMO Capital analyst David Gagliano maintained Alcoa with a Market Perform and lowered the price target from $55 to $50.
  • B. Riley Securities analyst Lucas Pipes maintained Alcoa with a Neutral and raised the price target from $41 to $42.
  • Citigroup analyst Alexander Hacking maintained Alcoa with a Neutral and raised the price target from $45 to $55.

AA Price Action: Alcoa has a 52-week high of $98.09 and a 52-week low of $33.55.

The stock was down 3.31% at $51.56 at time of publication, according to Benzinga Pro.

Photo: courtesy of Alcoa.

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