Arconic's stock set to sell off after profit beat, but revenue came up short
Shares of Arconic Inc. were indicated down about 5% in premarket trading Tuesday, after the metals manufacturing and engineering company reported a third-quarter profit that topped expectations but revenue that came up short and cut its full-year sales outlook. Net income fell to $95 million, or 21 cents a share, from $161 million, or 32 cents a share, in the year-ago period. Excluding non-recurring items, such as a $108 million asset impairment charge, adjusted EPS rose to 58 cents from 32 cents, above the FactSet consensus of 52 cents. Revenue rose 1% to $3.56 billion, but was below the FactSet consensus of $3.59 billion, as engineered products and forgings sales grew 7% to $1.8 billion and global rolled products revenue fell declined 4% to $1.8 billion. The company cut its 2019 revenue guidance range to $14.15 billion to $14.35 billion from $14.3 billion to $14.6 billion, citing lower aluminum prices and divestitures, but raised its adjusted EPS outlook to $2.07 to $2.11 from $1.95 to $2.05. Arconic increased its target for annualized cost-cut savings to $280 million from $260 million. The stock has rallied 22.2% over the past three months through Monday, while the Dow Jones Industrial Average has gained 6.8%.
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