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Monday, February 5, 2018

-=Arconic (ARNC) reported earnings on Mon 5 Feb 2018 (b/o)

Arconic beats by $0.07, beats on revs; guides FY18 EPS below consensus, revs above consensus; announces $500 mln buyback and $500 million early debt reduction; CEO reviewing strategy and portfolio; relocating HQ out of NYC
  • Reports Q4 (Dec) earnings of $0.31 per share, excluding non-recurring items, $0.07 better thanthe Capital IQ Consensus of $0.24; revenues rose 10.2% year/year to $3.27 bln vs the $3.08 bln Capital IQ Consensus, driven by higher volumes across all segments and higher aluminum prices. Fourth quarter 2017 organic revenue was up 6% year over year. Fourth quarter 2017 Consolidated adjusted EBITDA was $436 million, up 54% year over year. Consolidated adjusted EBITDA excluding special items was $446 million, up 24% year over year. Consolidated adjusted EBITDA margin excluding special items was 13.6%, up 150 basis points year over year, including a 190 basis point negative impact of higher aluminum prices, last-in-first-out (LIFO) and metal lag. EP&S reported revenue of $1.5 billion, an increase of 6% year over year, and Adjusted EBITDA of $296 million, up $31 million year over year. GRP reported revenue of $1.2 billion, an increase of 15% year over year. Organic revenue was up 7%. Adjusted EBITDA was $124 million, up $8 million year over year, driven by strong automotive volume and net cost savings, partially offset by reduced aerospace wide-body build rates, airframe destocking, pricing pressure in regional specialties, and the planned Tennessee Packaging ramp down.
  • Co issues mixed guidancefor FY18, sees EPS of $1.45-1.55, excluding non-recurring items, vs. $1.58 Capital IQ Consensus Estimate; sees FY18 revs of $13.4-13.7 bln vs. $13.05 bln Capital IQ Consensus Estimate. 
  • Arconic's Board of Directors has authorized a share repurchase program of up to $500 million of its outstanding common stock and a $500 million early debt reduction.
  • Chip Blankenship, who officially joined the Company on January 15, has initiated a review of Arconic's strategy and portfolio. The Company expects to complete this review by the end of the year.
  • As part of the Company's continued drive to reduce corporate overhead, Arconic announced that it will relocate its global headquarters in 2018 out of New York City to a more cost-effective location 

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