Kaiser Aluminum (KALU) tops Q1 EPS by 28c, suspends FY20 guidance

Kaiser Aluminum (NASDAQ: KALU) reported Q1 EPS of $1.90, $0.28 better than the analyst estimate of $1.62. Revenue for the quarter came in at $369 million versus the consensus estimate of $387.89 million.

2020 Outlook:

The Company began 2020 with a solid book of business and reported strong first quarter results and record adjusted EBITDA and EBITDA margin, despite some impact from automotive customer facility closings in the latter part of the quarter. The Company’s first quarter results reinforce the underlying strength of the business. However, the pandemic has introduced significant business and economic uncertainty, challenges and potential opportunities for the longer-term.

Commercial aerospace represents approximately 33% of the Company’s consolidated value added revenue under normal market conditions. At this time, the Company anticipates that its commercial aerospace value added revenue could be approximately 20-25% lower in 2020 compared to its record value added revenue in 2019. While many commercial aerospace customers have curtailed operations on a temporary basis, the Company is working in partnership to meet their current needs while also preparing for production levels to ramp up. Demand for the Company's defense business, which represents approximately 10-15% of consolidated value added revenue, is expected to remain strong through 2020.

The Company will suspend providing a full year outlook for 2020 until there is more clarity around the full economic impact of the COVID-19 pandemic.

For earnings history and earnings-related data on Kaiser Aluminum (KALU) click here.

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