Alcoa Reports Q4 Earnings Beat but Stock Declines
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 26 Jan 26
Source: Newsfilter
Alcoa Corp (AA) saw its stock drop by 5.02% as it crossed below the 20-day SMA, despite the broader market gains with Nasdaq-100 up 0.66% and S&P 500 up 0.65%.
The company's Q4 earnings report revealed an adjusted EPS of $1.26, exceeding expectations, with net income rising to $226 million. However, concerns about near-term pressures on earnings and cash flow led to a stock decline, despite the positive earnings performance. Analysts remain optimistic about Alcoa's long-term outlook, citing improvements in profitability and ongoing productivity initiatives.
This decline in stock price, despite strong earnings, suggests a potential sector rotation, as investors weigh immediate challenges against the company's positive long-term fundamentals.
Analyst Views on AA
Wall Street analysts forecast AA stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for AA is 46.00 USD with a low forecast of 33.00 USD and a high forecast of 58.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
6 Buy
2 Hold
2 Sell
Moderate Buy
Current: 60.640
Low
33.00
Averages
46.00
High
58.00
Current: 60.640
Low
33.00
Averages
46.00
High
58.00
About AA
Alcoa Corporation is a vertically integrated aluminum company comprised of bauxite mining, alumina refining, aluminum production (smelting and casting), and energy generation. The Company’s operations are comprised of two business segments: Alumina and Aluminum. The Alumina segment primarily consists of its bauxite mines and alumina refineries, which generally include the mining of bauxite and other aluminous ores, as well as the refining, production, and sale of smelter grade and non-metallurgical alumina. The alumina produced by this segment is sold to internal and external aluminum smelter customers; a portion of the alumina is sold to external customers who process it into industrial chemical products. The Aluminum segment consists of the Company’s aluminum smelting and casting operations along with the Company’s energy production assets in Brazil, Canada, and the United States. It has direct and indirect ownership of 26 operating locations across nine countries on six continents.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
