Alcoa Corp (AA: NYE) stock fell 2.8% in extended trading on Wednesday after reporting mixed Q4 results. While the earnings and revenue exceeded expectations, a year-over-year decline in sales by 2.6%, mainly in aluminum and alumina shipments, which somewhat tarnished the financial outlook.
Key indicators from Alcoa Corp’s Q4 Results:
Despite the mixed Q4 results, Alcoa Corp (AA: NYE) managed to narrow its adjusted loss per share from the same quarter last year, bringing it down to $0.56. Roy Harvey Jr., the company’s CEO, remains assured of Alcoa’s long-term potential. He laid emphasis on ongoing cost-cutting endeavors and strategic investments, particularly in sectors such as aerospace and automotive.
However, the market’s uncertain temperament, coupled with aluminum price volatility and fluctuating demand in key markets like China, has caused reluctance among analysts. Many are opting to wait for more distinct signs before updating ratings or issuing fresh recommendations.
Stock Target Advisor’s Analysis on Alcoa Corp:
Stock Target Advisor reflects a Slightly bullish rating on Alcoa Corp’s (AA: NYE) stock, establishing a target price of $27.92. This indicates a prospective price alteration of 2.71% over the next 12 months. Counter to this outlook, the average analyst target price over the next 12 months stands slightly higher, at $30.82, still upholding a Hold rating.
Stock Target Advisor’s analysis leans slightly Bullish for Alcoa Corp, based on 8 positive engagers and 6 negative signals. Sector analysis for the Aluminum industry shows a bullish trend, with the average analyst rating for the sector falling under the “Buy” category. The average 1-month and 1-week returns for the sector stocks, however, indicate deterioration.
Conclusion:
Alcoa Corp’s Q4 results showcased a mixed performance, with earnings and revenue exceeding expectations but a decline in sales causing some concerns. Despite this, Alcoa Corp’s CEO remains confident in the company’s long-term potential, citing ongoing cost-cutting efforts and strategic investments. However, analysts are cautious due to market uncertainty and volatility in aluminum prices and demand.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
