Arconic's stock surges after adjusted profit rises above expectations, outlook raised

Shares of Arconic Inc. surged 4.2% in premarket trading Friday, after the metals company reported a second-quarter profit and revenue that topped expectations, and raised its full-year earnings outlook. The company swung to a net loss of $121 million, or 27 cents a share, from net income of $187 million, or 39 cents a share, in the same period a year ago. Excluding non-recurring items, such as a $428 million impairment charge related to its disks business, adjusted EPS rose to 58 cents from 37 cents, to beat the FactSet consensus of 50 cents. Revenue grew 3% to $3.69 billion, above the FactSet consensus of $3.64 billion, as engineered products and solutions revenue rose in line with expectations and global rolled products revenue rose above expectations. For 2019, the company raised its adjusted EPS guidance range to $1.95 to $2.05 from $1.75 to $1.90, while affirming the revenue outlook of $14.3 billion to $14.6 billion. The stock has run up 44.5% year to date through Thursday, while the SPDR Industrial Select Sector ETF has climbed 18.5% and the S&P 500 has advanced 17.8%.

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