NYSE$AA

Alcoa · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Alcoa posted strong quarterly results supported by robust aluminum pricing.

Alcoa reported first quarter 2022 financial results that included quarterly records for net income, adjusted net income and Adjusted EBITDA excluding special items. Net income increased sequentially to $469 million, or $2.49 per share. Adjusted net income increased 21 percent sequentially to $577 million, or $3.06 per share. Adjusted EBITDA excluding special items increased 20 percent sequentially to $1,072 million.

  • Net income increased sequentially to $469 million, or $2.49 per share
  • Adjusted net income increased 21 percent sequentially to $577 million, or $3.06 per share
  • Adjusted EBITDA excluding special items increased 20 percent sequentially to $1,072 million
  • Repurchased $75 million shares of common stock and paid $18 million in cash dividends

Headline financials

Total Revenue

$3.29B

Previous: $2.87B+14.7%
EPS (adj)

$3.06

Previous: $0.79+287.3%
Bauxite Production (mdmt)

11.0M

Previous: 11.9M-7.6%
Alumina Production (kmt)

3.2M

Previous: 3.3M-3.5%
Aluminum Production (kmt)

498.0K

Previous: 548.0K-9.1%
Capital Expenditures

-$74M

Previous: -$75M+1.3%
Free Cash Flow

$395M

Previous: $100M+295.0%
Net Income

$469M

Previous: $175M+168.0%
Operating Income

-$2.23B

Previous: -$2.33B+4.0%
Gross Profit

-$2.18B

Previous: -$2.29B+4.8%
Cash & Equivalents

$1.55B

Previous: $2.54B-38.9%
Total Assets

$16B

Previous: $14.9B+7.1%
Stock-Based Comp

$9M

Previous: $8M+12.5%

Revenue & EPS history

Alcoa · Revenue · Quarterly

$3.29B

Q1 2022+14.7%vs Q1 2021
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Alcoa · $3.24B total across 2 segments · Q1 2022

  • Aluminum Sales
    $2.39B
  • Alumina Sales
    $855M+12.5%

Forward guidance

For the second quarter 2022, based on current prices, Alcoa expects both alumina and aluminum realized third-party prices to be higher than the first quarter, with that benefit partly offset by approximately $115 million of higher energy and raw materials costs. Higher shipments sequentially are expected to more than offset remaining cost pressures and other factors. Based on current alumina and aluminum market conditions, the Company expects second quarter tax expense to approximate $220 million to $230 million, which may vary with market conditions and jurisdictional profitability.

Tailwinds

  • Alcoa expects both alumina and aluminum realized third-party prices to be higher than the first quarter.
  • Higher shipments sequentially are expected to more than offset remaining cost pressures and other factors.

Headwinds

  • Benefit partly offset by approximately $115 million of higher energy and raw materials costs.
  • Company has decreased its projection for bauxite shipments in 2022 by 2 million dry metric tons to range between 46.0 and 47.0 million dry metric tons.
  • Company expects to slow production in its Juruti mine in Brazil by approximately 1.1 million dry metric tons.
  • Company is also observing Russia-related changes in the Atlantic bauxite market, which may impact shipments by approximately 1 million dry metric tons.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-1.6%

Avg return

Earnings day

-2.9%

Avg return

5 days after

+0.4%

Avg return

30 days after

42%

22 / 53 earnings

Positive

+15.7%

Q3 2021

Best reaction

-16.6%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.1%-2.7%-11.2%
Q4 2025-3.1%-5.0%-4.2%
Q3 2025+13.9%+10.3%+1.9%
Q2 2025-0.2%-6.4%+6.1%
Q1 2025-7.0%-3.0%+17.3%
Q4 2024-3.7%-11.9%-11.3%
Q3 2024-2.3%+0.5%+6.6%
Q2 2024-7.8%-10.7%-16.9%
Q1 2024-1.7%+0.7%+14.2%
Q4 2023-4.0%-0.9%-1.7%
Q3 2023-12.7%-15.7%-5.6%
Q2 2023-6.7%-3.7%-17.3%
Q1 2023-4.6%-9.8%-14.4%
Q4 2022-9.7%-5.7%-14.5%
Q3 2022-2.0%-1.4%+19.1%
Q2 2022+0.6%+4.2%+13.6%
Q1 2022-16.6%-22.2%-30.0%
Q4 2021+2.0%-3.4%+30.2%
Q3 2021+15.7%+10.9%+7.3%
Q2 2021-6.2%-0.5%+28.8%
Q1 2021+6.7%-1.2%+18.9%
Q4 2020-13.3%-16.2%+0.2%
Q3 2020-3.3%-0.7%+30.3%
Q2 2020+7.0%+0.9%+16.1%
Q1 2020-0.4%+0.7%+12.2%
Q4 2019-12.7%-13.2%-23.1%
Q3 2019+4.3%+5.2%+7.3%
Q2 2019+0.4%-1.5%-24.9%
Q1 2019-3.8%+1.5%-11.6%
Q4 2018+2.4%+1.3%-2.2%
Q3 2018+7.4%+9.0%-0.7%
Q2 2018-13.5%-13.9%-12.5%
Q1 2018+5.5%-9.1%-10.9%
Q4 2017-5.8%-5.9%-15.8%
Q3 2017-2.6%+0.3%-9.1%
Q2 2017+0.8%+0.7%+3.7%
Q1 2017+15.1%+6.4%+5.7%
Q4 2016+0.7%+1.0%-5.4%
Q3 2016-14.0%-16.1%+15.3%
Q2 2016+8.8%+11.2%+5.2%
Q1 2016+1.2%
Q4 2015-9.8%
Q3 2015-6.2%
Q2 2015-4.3%
Q1 2015-1.7%
Q4 2014-1.9%
Q3 2014-3.5%
Q2 2014+6.5%
Q1 2014+4.2%
Q4 2013-6.7%
Q3 2013+1.6%
Q2 2013+1.3%
Q1 2013+1.8%

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