ALCOA CORPORATION Reports 4.6% YOY Revenue Increase, But Net Income Down 20.3% for Q4 FY2022

Earnings report

ALCOA CORPORATION ($NYSE:AA) is a publicly traded aluminum producer based in Pittsburgh, Pennsylvania. The company’s products are used in the aerospace, automotive, construction, and packaging industries. For the fourth quarter of FY2022, which ended on December 31, 2022, ALCOA CORPORATION reported total revenue of USD -374.0 million, a 4.6% year-over-year increase. Net income, however, decreased by 20.3% year-over-year to USD 2663.0 million. These results were released on January 18, 2023. The decrease in net income was mainly due to higher operating costs and lower sales volumes. Despite these headwinds, ALCOA CORPORATION maintained its strong financial position and relatively low debt levels.

The company also improved its liquidity position by increasing cash flow from operations and reducing its capital expenditure requirements. Moving forward, ALCOA CORPORATION is focused on expanding its operations into new markets and improving its efficiency to further increase profitability. The company is also focusing on cost optimization strategies to reduce raw material costs and improve its overall profitability. Overall, ALCOA CORPORATION reported a 4.6% year-over-year increase in revenue but a 20.3% decrease in net income for the fourth quarter of FY2022. Despite these headwinds, the company maintained its strong financial position, improved its liquidity position, and is continuing to focus on cost optimization strategies to drive future growth.

Market Price

On Wednesday, ALCOA CORPORATION reported a 4.6% year-over-year (YOY) revenue increase for the fourth quarter of FY2022.

However, the company’s net income fell by 20.3% YOY for the same period. This was reflected in the stock prices which opened at $56.5 and closed at $53.4, down by 2.6% from the previous closing price of $54.9. The revenue increase was driven by growth in volumes across the company’s core businesses, such as alumina, aluminum, recycled aluminum, and other products and services. However, this revenue growth was offset by higher costs, primarily related to energy and raw materials. This was mainly due to higher operating costs and lower average realized prices for alumina and aluminum products. In spite of the weaker financial performance in Q4 FY2022, ALCOA CORPORATION expects to deliver solid financial results for FY2023, driven by cost reduction initiatives and increased demand for its products in the automotive and construction industries. The company remains committed to its long-term strategy of focusing on costs, capital discipline, and value creation. Live Quote…

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

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Key Ratios Snapshot

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VI Analysis

ALCOA Corporation is a high risk investment according to VI Risk Rating. VI App, a financial analysis tool, has made it easy to understand the company’s fundamentals and potential. The app has detected three risk warnings in the income sheet, balance sheet, and non-financial aspects. When assessing the company’s value, investors must consider the financial health of the organization. The income sheet should be checked for any signs of cash flow disruption or operational losses. The balance sheet should be analyzed for financial leverage, liquidity, and profitability. Non-financial risks, such as legal, regulatory, and competitive risks, should also be considered. By monitoring ALCOA Corporation’s financial and non-financial performance, investors can make informed decisions about their investment. Investors should register on VI App to get comprehensive insights into the company’s risk profile. Additionally, they should consider the company’s long-term growth and competitive position in the industry before investing in ALCOA Corporation. More…

VI Peers

Alcoa Corp, one of the world’s largest aluminum producers, competes with a number of other companies in the industry, including Norsk Hydro ASA, MLG Oz Ltd, and Anglo American PLC. While each company has its own strengths and weaknesses, Alcoa has been able to stay ahead of the competition by focusing on innovation and efficiency.

– Norsk Hydro ASA ($OTCPK:NHYDY)

Norsk Hydro ASA is a Norwegian aluminum and renewable energy company. It has a market capitalization of 12.63 billion as of 2022 and a return on equity of 23.31%. The company produces aluminum and aluminum products, and also has operations in hydropower, wind power, and other renewable energy sources.

– MLG Oz Ltd ($ASX:MLG)

Anglo American PLC is a British multinational mining company with headquarters in London, United Kingdom. It is the world’s largest producer of platinum, with around 40% of world output, as well as being a major producer of diamonds, copper, nickel, iron ore and metallurgical and thermal coal. The company has operations in Africa, Asia, Australia, Europe, North America and South America.

Summary

ALCOA CORPORATION has seen mixed results in the fourth quarter of FY2022, ending December 31, 2022. Total revenue for the quarter was USD -374.0 million, a 4.6% increase year-over-year. Despite this positive growth, net income decreased by 20.3% year-over-year to USD 2663.0 million. For investors, this could be concerning but it is important to note that these results are for a single quarter, and should not be used as an indication of long-term performance. ALCOA CORPORATION is a diversified company with operations in the aluminum and transportation industries, which could be a mitigating factor to the decrease in net income.

Additionally, the company has a long track record of success and resilience, which could lead to renewed growth in the coming quarters. It is also important to note that ALCOA CORPORATION is well-positioned in the industry and has been able to make strategic acquisitions and partner with other companies to drive growth. This is evidenced by the reported 4.6% year-over-year increase in total revenue, despite the decrease in net income. Investors should consider these factors when evaluating the future prospects of ALCOA CORPORATION.