Alcoa Corporation shares rose more than 4% on Wednesday after the company reported better-than-expected first quarter financial results. Revenue rose 16.2% to $3.09 billion – beating consensus estimates by $10 million – while net income of 77 cents per share beat consensus estimates by seven cents per share. In addition to the favorable results, the company raised its guidance for FY 2018 EBITDA to a range of $3.5 billion to $3.7 billion – ahead of its previous outlook.
The company believes that there will be a global deficit for both aluminum and alumina. With delays in smelter expansions in China, the global aluminum deficit is projected to grow to 300,000 to 700,000 metric tons, while global aluminum demand is projected to rise 4.25% to 5.25%. Management believes that there will be a deficit of up to 1.1 million metric tons following a balanced market last quarter. (See also: Investing in the Metals Markets.)
Alcoa shares broke out to new 52-week highs following Q1 earnings, but traders will be watching these levels over the coming sessions. …read more
Read more here: Alcoa Stock Breaks Out After Solid Q1