Sumary of Why Kaiser Aluminum Stock Slumped Today Despite 169% Sales Growth:
- What happened Kaiser Aluminum (NASDAQ:KALU) shares went on a roller-coaster ride today.
- EDT, the aluminum stock was down 12.8% as Kaiser reported a big net loss for its second quarter.
- That was in sharp contrast to rival Alcoa’s (NYSE:AA) recently reported quarterly earnings — Alcoa shares soared on the day of its earnings release.
- Investors, however, seem to have found green shoots in Kaiser’s otherwise seemingly morbid quarterly numbers, which is why the stock regained some ground and closed Thursday down only 5.8%.
- So what Kaiser Aluminum released its second-quarter earnings report after market close on July 21. Kaiser’s net sales surged 168.5% year over year to $741 million, with value-added products making up nearly 43% of its total sales.
- In April, Kaiser acquired Alcoa’s Warrick rolling mill, which boosted its value-added revenue by nearly 82% in Q2. The acquisition marked Kaiser’s reentry into the lucrative aluminum packaging industry (think food and beverage packaging).
- Now what Kaiser’s outlook for the rest of the year suggests the sell-off in its shares wasn’t entirely warranted.