Alcoa Corp. (AA.US) stock rose over 5.0% in premarket trading, after the company provided better than expected preliminary second-quarter results, citing productivity gains and cost savings amid challenges resulting from the COVID-19 pandemic. The aluminum products maker expects that net losses will drop from $205 million to $190 million, compare to a loss of $402 million in the year-ago period. Alcoa expects an adjusted loss per share of 8 cents to breakeven, excluding non-recurring items, while analysts polled by FactSet expected a loss of 58 cents per share. The company expects revenue to fall between $2.10 billion to $ 2.18 billion compared to $ 2.71 billion a year ago, still above analysts' estimates of $ 2.09 billion. Alcoa expects that production will rise 5% at mining locations and 2% at refining locations, compared with the Q1 of 2020, and primary aluminum production is expected to increase 3%. Company's cash balances should exceed $950 million, up from 829 million reported at the end of March 2020.
Alcoa Corp. (AA.US) - has been trading in an sideways move since July, however today's positive preliminary earnings results may be able to help market bulls break the resistance level at $12.38 per share. However, one should be aware that in case of a break below the support at $10.71 per share, downward move may accelerate. Source: xStation5
