Arconic Inc. shares (NYS:ARNC) surged 3.9% in premarket trade Tuesday, after the maker of aluminum parts for the aerospace and car industries topped profit estimates for the first quarter and raised guidance. The company said it had net income of $187 million, or 39 cents a share, in the quarter, up from $143 million, or 29 cents a share, in the year-earlier period. Adjusted per-share earnings came to 43 cents, ahead of the 39 cents FactSet consensus. Revenue rose 3% to $3.5 billion, matching the FactSet consensus. The company raised its target for cost cuts by $30 million to about $230 million on a run-rate basis with about $120 million of that total targeted for 2019. The company said it still expects full-year revenue of $14.3 billion to $14.6 billion. But it raised its adjusted EPS guidance to $1.75 to $1.90 from $1.55 to $1.65. It expects second-quarter adjusted earnings of 46 cents to 51 cents. It said it is cutting its quarterly dividend to 2 cents a share from 6 cents. Shares have gained 16% in the last 12 months, while the S&P 500 (S&P:SPX) has gained 11%.
April 30, 2019, 8:19 a.m. EDT