Financial Report Outlook | Growth in European and American Demand. Alcoa Corporation (AA.US) is expected to achieve a 30% increase in performance in the fourth quarter.

Alcoa Corporation (AA.US) will announce its fourth quarter earnings for 2024 in the early morning of January 23rd (Wednesday after the U.S. stock market closes), with revenue expected to increase compared to the same quarter last year. Market forecast for revenue is $3.4 billion, a 30.1% increase from the same period last year; market expectations for earnings per share are 91 cents, a 262.5% increase from the same period last year. Business Focus Increased demand for aluminum in Europe and North America is expected to benefit Alcoa's aluminum business in the fourth quarter of 2024. Additionally, strong momentum in the construction market and the recovery in the packaging industry may promote sales in the aluminum business. For the fourth quarter, market expectations for third-party aluminum sales are $2 billion, an 18.9% increase from the same period last year. Total aluminum sales are expected to be $1.97 billion, a 16.7% increase from the reported figures of the same period last year. Alcoa's alumina business has benefitted from increased alumina shipments and smelter output. Market expectations for third-party alumina sales are $1.3 billion, a 72.3% increase from the same period last year. Overall alumina sales are expected to be $2.1 billion, a 54.1% increase from the same period last year. Synergies from recent acquisitions are expected to boost revenue. In August 2024, Alcoa Corporation acquired Alumina Limited. This acquisition strengthened its position as a global pure upstream aluminum company. Furthermore, decreases in raw material prices and energy costs in both sectors could support the company's performance. Reductions in production at the Quinana refinery in Australia may put pressure on the company's sales. Due to its extensive geographical presence, the company's operations are affected by global political risks and foreign exchange headwinds. A stronger U.S. dollar may harm Alcoa Corporation's overseas business this quarter. Jefferies Financial Group Inc. rates it as the industry's top pick Alcoa Corporation (AA.US) was previously rated as one of the top picks for mining stocks this year by Jefferies Financial Group Inc. Analyst Christopher La Femina stated, "Although we have become more cautious about the short-term outlook for the industry due to cyclical factors recently and believe that the downside risks are generally expected, we think that it is too late to downgrade our rating now," "Taking into consideration the recent sharp decline, we are inclined to buy into mining and steel producers that we favor."