Alcoa (NYSE:AA) Shares Gap Down After Earnings Miss

Key Points

• Shares gapped down after Alcoa reported quarterly EPS of $1.40 versus $1.60 expected and revenue of $3.19B versus $3.35B expected, with the stock opening at $65.05 after a $70.41 close.
• Underlying operational metrics showed pressure — revenue fell 5.2% year‑over‑year with lower shipments, declines in gross/operating profit and negative operating cash flow — driving the immediate sell‑off.
• Alcoa paid a quarterly dividend of $0.10 (annualized $0.40, 0.6% yield) and management flagged higher aluminum prices and expected Q2 improvement, but analysts remain mixed with an average rating of "Hold" and an average price target of $61.73.

Alcoa (NYSE:AA - Get Free Report) shares gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $70.41, but opened at $65.05. Alcoa shares last traded at $66.5190, with a volume of 1,522,805 shares changing hands.

The industrial products company reported $1.40 earnings per share for the quarter, missing analysts' consensus estimates of $1.60 by ($0.20). The business had revenue of $3.19 billion for the quarter, compared to analyst estimates of $3.35 billion. Alcoa had a return on equity of 16.19% and a net margin of 9.12%.The business's revenue was down 5.2% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.15 earnings per share.

Alcoa Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, March 26th. Investors of record on Tuesday, March 10th were given a dividend of $0.10 per share. The ex-dividend date was Tuesday, March 10th. This represents a $0.40 dividend on an annualized basis and a yield of 0.6%. Alcoa's payout ratio is presently 9.05%.

Key Headlines Impacting Alcoa

Here are the key news stories impacting Alcoa this week:

• Positive Sentiment: Higher aluminum prices boosted profitability versus last quarter and the company highlighted improved net income and margins compared with Q4, supporting near-term revenue per ton. Alcoa Q1 Press Release
• Positive Sentiment: Management emphasized strategic initiatives and a strong cash balance and said it expects a better second quarter, which could reassure investors if operational improvements materialize. Alcoa Q1 Highlights
• Positive Sentiment: Wall Street views and momentum remain mixed but include several analyst targets above the current price and momentum screens that still list AA as a trader/long candidate after the recent run. Quiver Quant: AA Post-Earnings
• Neutral Sentiment: Broader market futures were firmer in premarket trade, which may provide some upward pressure on cyclicals like Alcoa even as stock-specific news dominates. US Premarket Movers
• Neutral Sentiment: Full earnings call transcripts and slides are available for deeper scrutiny; investors should review commentary on volumes, pricing, and capital spending for guidance clarity. Earnings Call Transcript
• Negative Sentiment: Q1 results missed top-line and consensus EPS (revenue and adjusted EPS came in below analyst expectations), triggering the immediate sell-off as investors focus on demand/volume weakness. MarketBeat: Q1 Earnings Summary
• Negative Sentiment: Underlying operational metrics showed pressure—lower shipments, declines in gross/operating profit and negative operating cash flow in the quarter—raising near-term margin and cash-flow risk. Quiver Quant: Financial Details
• Negative Sentiment: Geopolitical risk (Iran conflict) is expected to modestly hit adjusted earnings and adds uncertainty to supply/demand dynamics that could keep volatility elevated. WSJ: Profit, Sales Fall

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on the stock. UBS Group boosted their price target on shares of Alcoa from $48.00 to $70.00 and gave the stock a "neutral" rating in a research report on Thursday, March 12th. B. Riley Financial boosted their price target on shares of Alcoa from $78.00 to $96.00 and gave the stock a "buy" rating in a research report on Tuesday, April 7th. Wall Street Zen upgraded shares of Alcoa from a "hold" rating to a "buy" rating in a research report on Saturday, February 21st. Zacks Research upgraded shares of Alcoa from a "hold" rating to a "strong-buy" rating in a research report on Friday, April 10th. Finally, JPMorgan Chase & Co. boosted their target price on shares of Alcoa from $68.00 to $70.00 and gave the company a "neutral" rating in a report on Thursday, April 9th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $61.73.

Hedge Funds Weigh In On Alcoa

Several institutional investors and hedge funds have recently bought and sold shares of the company. Evolve Private Wealth LLC boosted its holdings in Alcoa by 6.1% in the 1st quarter. Evolve Private Wealth LLC now owns 6,601 shares of the industrial products company's stock valued at $438,000 after purchasing an additional 378 shares during the last quarter. Rockefeller Capital Management L.P. boosted its holdings in Alcoa by 4,124.6% in the 4th quarter. Rockefeller Capital Management L.P. now owns 38,233 shares of the industrial products company's stock valued at $2,032,000 after purchasing an additional 37,328 shares during the last quarter. World Investment Advisors acquired a new position in Alcoa in the 4th quarter valued at about $246,000. Corient Private Wealth LLC boosted its holdings in Alcoa by 30.4% in the 4th quarter. Corient Private Wealth LLC now owns 13,445 shares of the industrial products company's stock valued at $715,000 after purchasing an additional 3,138 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd lifted its holdings in shares of Alcoa by 5,281.8% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 592 shares of the industrial products company's stock worth $31,000 after acquiring an additional 581 shares during the last quarter.

Alcoa Stock Performance

The firm's fifty day moving average price is $63.89 and its 200 day moving average price is $52.49. The company has a current ratio of 1.44, a quick ratio of 0.87 and a debt-to-equity ratio of 0.40. The stock has a market capitalization of $17.51 billion, a price-to-earnings ratio of 15.09 and a beta of 1.70.

Alcoa Company Profile

Alcoa Corporation is a global industry leader in the production and management of aluminum, offering an integrated value chain that spans bauxite mining, alumina refining, primary aluminum smelting and the fabrication of value-added products. The company's operations are organized into segments that include raw material extraction, chemical processing and the manufacture of metal mill products and engineered solutions.

Alcoa's product portfolio serves diverse end markets such as aerospace, automotive, packaging, construction, electrical and industrial applications.

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