KALU Earnings Prediction
The chart below shows how KALU performed 10 days before and after its earnings report, based on data from the past quarters. Typically, KALU sees a -0.20% change in stock price 10 days leading up to the earnings, and a +2.50% change 10 days following the report. On the earnings day itself, the stock moves by -1.18%. This data can give you a slight idea of what to expect for the next quarter's release.
KALU Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
747.70M
0.55%
-3.32%
Gross Margin
6.27%
-9.00%
-10.04%
Operating Margin
2.42%
-12.95%
-15.97%
Net Margin
1.60%
119.18%
300.00%
EPS
0.73
121.21%
284.21%
No Data Available
KALU Earnings Analysis
Kaiser Aluminum Corporation Corporation (KALU.O) Earnings Conference Call
Positive
Adjusted EBITDA Increase: 1. Increased Adjusted EBITDA: Kaiser Aluminum reported an adjusted EBITDA of $50 million for Q3 2024, reflecting a 4% increase from the prior year, driven by higher conversion revenue.
Net Income Increase: 2. Improved Net Income: The company achieved a net income of $12 million or $0.74 per diluted share, compared to $5 million or $0.34 per diluted share in the same quarter last year, indicating strong profitability growth.
Stable Conversion Revenue Growth: 3. Stable Conversion Revenue: Conversion revenue for the third quarter was $362 million, a 1% increase year-over-year, showcasing resilience in revenue generation despite market challenges.
Liquidity Strength: 4. Strong Liquidity Position: As of September 30, 2024, Kaiser Aluminum had total liquidity of approximately $595 million, consisting of $46 million in cash and $549 million in available borrowing capacity, ensuring financial flexibility.
Quarterly Dividend Announcement: 5. Quarterly Dividend Declaration: The Board of Directors declared a quarterly dividend of $0.77 per common share, reflecting confidence in the company's strategy and commitment to returning value to shareholders.
Negative
Aerospace Revenue Decline: 1. Decline in Aerospace Revenue: Aerospace and high-strength conversion revenue decreased by 5% to $128 million, driven by a 7% drop in shipments due to supply chain challenges.
Operating Cost Increase: 2. Increased Operating Costs: Reported operating income was $17 million, which included a $2 million rise in depreciation and amortization expenses compared to the previous year.
High Debt Leverage Concern: 3. High Net Debt Leverage Ratio: The net debt leverage ratio stood at 4.6 times, significantly above the target range of 2 to 2.5 times, indicating a concerning level of debt relative to earnings.
LIFO Charge Impact: 4. GAAP LIFO Charge Impact: The quarter's net income and adjusted EBITDA were negatively affected by a GAAP LIFO charge of approximately $4 million, reflecting lower inventory costs at the beginning of the quarter.
Flat Conversion Revenue Outlook: 5. Stagnant Overall Conversion Revenue Outlook: The company expects overall conversion revenue growth to remain flat, with a forecast of only 0% to 1% growth compared to 2023, indicating limited growth potential.
KALU FAQs
How does KALU typically perform around its earnings report dates?
Is Kaiser Aluminum Corporation (KALU) Q3 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
KALU Earning Call Sentiment
Kaiser Aluminum Corporation (KALU) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
KALU.O
-0.53%Positive
The earnings call reveals mixed signals. Basic financials show improved EBITDA margins and net income, but concerns about elevated capital expenditures and regulatory challenges persist. The aerospace sector faces potential destocking issues, yet tariffs may bolster North American manufacturing. The Q&A section highlights uncertainties, especially in scrap spreads and aerospace impacts. The company's market cap suggests moderate volatility. Overall, stable financials and optimistic guidance in some areas counterbalance potential risks, resulting in a neutral sentiment rating with expected stock price movement in the -2% to 2% range.
