Alcoa Corporation AA reported fourth-quarter 2024 results, wherein its bottom and top lines beat the Zacks Consensus Estimate. The company’s adjusted earnings were $1.04 per share, which beat the consensus estimate of 93 cents. AA reported an adjusted loss of 56 cents per share in the prior-year quarter. Total revenues of $3.5 billion beat the Zacks Consensus Estimate of $3.4 billion. The top line increased 20% from the year-ago quarter.

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AA’s Segmental Details

In the fourth quarter, Alcoa’s Alumina production fell 2% on a sequential basis to 2.39 million tons. On the other hand, Aluminum production increased 2% sequentially to 571,000 metric tons, driven by continued progress on the Alumar, Brazil smelter restart.

Alcoa’s overall third-party revenues increased 20% on a sequential basis to $3.5 billion in the quarter. The Alumina segment’s third-party revenues increased 46% on a rise in average realized third-party price and higher shipments. The Aluminum segment’s revenues increased 5% on an increase in average realized third-party price.

Alcoa’s Costs & Expenses

The company’s total cost of sales was $2.7 billion, up 11.9% year over year. Selling, general and administrative expenses were $80 million, up 25% year over year. Interest expense was $45 million compared with $28 million a year ago.

Net income (adjusted) in the fourth quarter was $276 million, up 104% sequentially.

AA’s Balance Sheet/Cash Flow

Alcoa had cash and cash equivalents of $1.1 billion compared with $944 million at the end of December 2023. Long-term debt was $2.5 million, higher than $1.7 billion at 2023-end.

In 2024, AA generated net cash of $622 million from operating activities compared with $91 million in the year-ago period. Capital expenditure totaled $580 million in the quarter compared with $531 million in the year-ago period.

Free cash flow was $42 million in the year against a cash outflow of $440 million in the year-ago period.

Alcoa’s Guidance

For 2025, Alcoa expects alumina production to be in the range of 9.5-9.7 million metric tons and alumina shipments to be between 13.1 million and 13.3 million metric tons. AA expects the Aluminum segment’s production to be in the range of 2.3-2.5 million metric tons. Shipments from the segment are expected to be in the range of 2.6-2.8 million metric tons.

AA’s Zacks Rank

The company currently sports a Zacks Rank #1 (Strong Buy).

Other Stocks to Consider

Other top-ranked companies are discussed below.

Graham Corporation GHM currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

GHM delivered a trailing four-quarter average earnings surprise of 101.9%. In the past 60 days, the Zacks Consensus Estimate for Graham’s fiscal 2025 (ending March 2025) earnings has remained steady.

Enersys ENS presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter average earnings surprise of 1.6%.

In the past 60 days, the consensus estimate for ENS’ fiscal 2025 (ending March 2025) earnings has increased 8%.

Applied Industrial Technologies AIT presently carries a Zacks Rank of 2. AIT delivered a trailing four-quarter average earnings surprise of 5%.

In the past 60 days, the consensus estimate for AIT’s fiscal 2025 (ending June 2025) earnings has inched up 0.2%.

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