Alcoa (NYSE:AA) Issues Earnings Results, Misses Expectations By $0.20 EPS

Alcoa (NYSE:AA) released its quarterly earnings results on Thursday. The industrial products company reported $1.40 earnings per share for the quarter, missing the consensus estimate of $1.60 by ($0.20), FiscalAI reports. Alcoa had a net margin of 8.27% and a return on equity of 12.86%. The company had revenue of $3.19 billion during the quarter, compared to the consensus estimate of $3.35 billion. During the same quarter last year, the firm earned $2.15 EPS. The business’s revenue was down 5.2% on a year-over-year basis.

Here are the key takeaways from Alcoa’s conference call:

• Strong Q1 financials — adjusted EBITDA was $595 million, adjusted net income $373 million ($1.40/sh), the company ended March with $1.4 billion of cash and has issued notice to redeem $219 million of 2028 notes as part of a deleveraging plan.
• Aluminum fundamentals and execution are tailwinds: LME prices rose ~10% sequentially, Aluminum segment adj. EBITDA increased $174 million and Q2 is expected to benefit ~+$55 million from higher prices, premiums, inventory repositioning and stronger value‑add demand; Alcoa also notes less than 1% exposure to spot electricity.
• Alumina faces near‑term headwinds — third‑party revenue fell 33% q/q, alumina adj. EBITDA decreased $52 million due to lower prices, weaker bauxite margins and shipping disruptions (Middle East conflict and Cyclone Narelle), and the San Ciprián refinery remains loss‑making despite a smelter restart.
• Strategic progress is steady but value/timing uncertain: Western Australia mine approvals remain on track for ministerial approval by year‑end 2026, Massena East is in advanced talks for a data‑center sale, and two other idle‑site monetizations are being pursued.

Alcoa Stock Down 6.8%

Shares of NYSE:AA opened at $65.63 on Friday. 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 fifty day simple moving average of $64.02 and a two-hundred day simple moving average of $52.71. Alcoa has a 12-month low of $22.68 and a 12-month high of $75.70. The stock has a market capitalization of $17.32 billion, a price-to-earnings ratio of 16.61 and a beta of 1.70.

Alcoa Dividend Announcement

The business also recently disclosed 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. This represents a $0.40 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend was Tuesday, March 10th. Alcoa’s dividend payout ratio (DPR) is 9.05%.

Wall Street Analysts Forecast Growth

AA has been the topic of a number of research reports. B. Riley Financial lifted their target price on shares of Alcoa from $78.00 to $96.00 and gave the company a “buy” rating in a research note on Tuesday, April 7th. Zacks Research raised Alcoa from a “hold” rating to a “strong-buy” rating in a research report on Friday, April 10th. Citigroup upped their target price on Alcoa from $54.00 to $76.00 and gave the stock a “buy” rating in a report on Monday, March 16th. Weiss Ratings restated a “hold (c)” rating on shares of Alcoa in a research note on Monday, December 29th. Finally, JPMorgan Chase & Co. lifted their price target on Alcoa from $68.00 to $70.00 and gave the company a “neutral” rating in a research report on Thursday, April 9th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Alcoa has an average rating of “Hold” and an average target price of $61.73.

Key Headlines Impacting Alcoa

Here are the key news stories impacting Alcoa this week:

• Positive Sentiment: Management expects sequential improvement in Q2 as the San Ciprián restart completes, shipments recover and product premiums rise — a near-term operational catalyst if execution holds. CEO Interview
• Neutral Sentiment: Profitability and liquidity show strength: adjusted EBITDA was reported around $595M and cash & cash equivalents improved to about $1.35B, which partially cushions near-term risks. Q1 Press Release
• Neutral Sentiment: Analyst views and targets remain mixed (median target ~$75) — some firms bullish on aluminum upside while others are cautious on execution and macro/tariff risk. Analyst & Ratings Summary
• Negative Sentiment: Q1 missed expectations: adjusted EPS and revenue came in below consensus (EPS shortfall and revenue miss), prompting sell-side reaction. Earnings Miss
• Negative Sentiment: Shipment weakness and logistics disruptions: third‑party alumina shipments plunged sequentially and total aluminum shipments fell as the company repositioned inventory and faced delays (Australia cyclone + Middle East conflict cited). That reduces near-term revenue and margin visibility. Shipment Impact
• Negative Sentiment: Tariff and geopolitical headwinds: management flagged a roughly $35M sequential increase in Section 232 tariff costs on U.S. imports from Canada and a modest hit from the Iran conflict, both pressuring Q2 margins. Tariff & Geopolitical Note
• Negative Sentiment: Operating cash flow weakness: Q1 showed negative operating cash flow (a near-term liquidity/working-capital signal investors will watch). Cash Flow Details

Hedge Funds Weigh In On Alcoa

Institutional investors and hedge funds have recently modified their holdings of the stock. Dimensional Fund Advisors LP grew its position in Alcoa by 4.2% during the 4th quarter. Dimensional Fund Advisors LP now owns 11,580,803 shares of the industrial products company’s stock valued at $615,428,000 after purchasing an additional 462,243 shares during the last quarter. State Street Corp increased its stake in Alcoa by 6.7% during the 3rd quarter. State Street Corp now owns 11,458,529 shares of the industrial products company’s stock valued at $376,871,000 after purchasing an additional 721,063 shares in the last quarter. L1 Capital Pty Ltd raised its holdings in Alcoa by 22.3% in the third quarter. L1 Capital Pty Ltd now owns 5,887,699 shares of the industrial products company’s stock worth $193,646,000 after buying an additional 1,073,357 shares during the last quarter. AQR Capital Management LLC lifted its stake in shares of Alcoa by 153.4% in the fourth quarter. AQR Capital Management LLC now owns 4,134,425 shares of the industrial products company’s stock worth $219,703,000 after buying an additional 2,503,132 shares in the last quarter. Finally, Maple Rock Capital Partners Inc. bought a new position in shares of Alcoa in the fourth quarter worth approximately $173,412,000.

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.