NYSE$AA
Alcoa · Q2 2020 earnings
Q2 2020 earnings · · Investor relations
Briefing
Alcoa reported second quarter 2020 results reflecting improved productivity and continued operational stability during the COVID-19 pandemic.
Alcoa's Q2 2020 results showed strong operating performance with higher production, and cash preservation and productivity helped mitigate the economic impact of COVID-19. The company generated $288 million in cash from operations and $211 million in free cash flow.
- Managed health risks posed by the COVID-19 pandemic across global operations; all production sites remain fully operational.
- Executed previously announced cost-saving actions with continued progress on working capital and productivity; cash balance grew to $965 million, a sequential increase of $136 million.
- Generated $288 million in cash from operations; $211 million free cash flow, the highest since the fourth quarter of 2018.
- Set first-half and quarterly production records for Bauxite segment; record quarterly shipments from Juruti (Brazil).
Headline financials
Revenue & EPS history
Alcoa · Revenue · Quarterly
$2.15B
Revenue by segment
Alcoa · $603M total across 1 segment · Q2 2020
- Alumina Sales$603M—100.0%
Forward guidance
The Company’s 2020 shipment outlook for Bauxite, Alumina and Aluminum remains unchanged from the prior full-year estimates. Total annual bauxite shipments are expected to range between 48.0 and 49.0 million dry metric tons. Total alumina shipments are projected between 13.6 and 13.7 million metric tons. Aluminum shipments are expected to be between 2.9 and 3.0 million metric tons.
Tailwinds
- Bauxite segment expects slightly lower quarterly results primarily due to lower volume.
- Alumina segment expects lower quarterly results from higher energy costs in Australia.
- Aluminum segment expects improved results with lower raw material costs including energy.
- Alcoa is lowering its annual outlook for depreciation, depletion and amortization expense to $665 million from $685 million as favorable currency rates resulted in lower expense in the first half of 2020, as well as lower capital spending in the year.
- The Company is increasing its expected interest expense for full year 2020 to approximately $150 million from a prior range of $125 to $130 million due to the debt issuance.
Headwinds
- COVID-19 pandemic is ongoing, and its magnitude and duration continue to be unknown.
- Uncertainty around its future impact on the Company’s business.
- Uncertainty around its future impact on the Company’s financial condition.
- Uncertainty around its future impact on the Company’s operating results.
- Uncertainty around its future impact on the Company’s cash flows.
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 Q2 2020
-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
| Quarter | Report date | Reaction (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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