Alcoa Reports Q2 Financial Results and Cuts Outlook for This Reason

Alcoa reported its second quarter financial results on Wednesday after the close that topped estimates.

Analysts were expecting earnings per share of $1.33, representing a 115% increase, and revenue at $3.555 billion, a growth of 24%.

In reality, Alcoa reported EPS of $1.52 and revenue of $3.58 billion, beating both estimates.

For the quarter, the world’s 6th largest aluminum producer, incurred $15 million in costs for tariffs on imports from the company’s foreign operations for U.S. sale.

Looking ahead, the company has forecasted adjusted full-year EBITDA of a range of $3 billion to $3.2 billion. Previously the company had forecast a range of $3.5 billion to $3.7 billion.

According to Alcoa management, the lowered outlook “reflects current market prices, tariffs on imported aluminum, increased energy costs, and some operational impacts.”

The company said, “Uncertainty continues to exist in the global supply chain due to U.S. tariffs and ongoing alumina supply disruptions in the Atlantic region.”

Disclaimer: We have no position in Alcoa Corporation (NYSE: AA) and have not been compensated for this article.