Alcoa Provides Q3 2024 Guidance
Portfolio Pulse from Benzinga Newsdesk
Alcoa has provided its Q3 2024 guidance, highlighting various impacts on its financials. The company expects a $10 million unfavorable impact on Alumina Segment Adjusted EBITDA due to bauxite grade issues in Australia, and a $10 million favorable impact on Aluminum Segment Adjusted EBITDA from raw material prices. Interest expense is expected to rise by $5 million due to the assumption of Alumina Limited debt. Operational tax expense is projected to be between $60 million and $70 million, and net income attributable to noncontrolling interest is expected to be around $20 million.

July 17, 2024 | 8:13 pm
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NEUTRAL IMPACT
Alcoa's Q3 2024 guidance includes a mix of favorable and unfavorable impacts. The Alumina Segment Adjusted EBITDA will face a $10 million unfavorable impact due to bauxite grade issues, while the Aluminum Segment Adjusted EBITDA will benefit from a $10 million favorable impact from raw material prices. Interest expense is expected to increase by $5 million due to the assumption of Alumina Limited debt. Operational tax expense is projected to be between $60 million and $70 million, and net income attributable to noncontrolling interest is expected to be around $20 million.
The guidance provided by Alcoa for Q3 2024 includes both positive and negative impacts. The unfavorable impact on Alumina Segment Adjusted EBITDA and the increase in interest expense are offset by the favorable impact on Aluminum Segment Adjusted EBITDA. The operational tax expense and net income from noncontrolling interest are within expected ranges. Overall, the mixed nature of the impacts suggests a neutral short-term effect on Alcoa's stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100