How did AA's Q4 earnings surprise impact investor confidence?

Alcoa Corporation's (AA) Q4 earnings surprise had a positive impact on investor confidence, as evidenced by the following factors: 1. **Consistent Improvement in Financial Metrics**: Alcoa's Q4 earnings report showcased significant improvements in key financial metrics such as net income and EPS. The company reported a net income of $90 million, a stark improvement from a loss of $168 million in the same quarter of the previous year. The EPS was recorded at $0.38 per share, reflecting a strong recovery from a loss of $0.94 per share in the previous year's same quarter. 2. **Revenue Growth**: Although revenue was slightly below analyst estimates, with reported revenue of $2.904 billion compared to the estimated $2.843 billion, the 12% year-over-year increase is a positive indicator of the company's performance. The company's revenue grew from $2.9 billion in the prior quarter to $2.904 billion, indicating a slight sequential increase. 3. **Analyst Expectations and Ratings**: Analysts had set expectations for Alcoa's FY2024 earnings, and the company's performance in Q4 likely reinforced confidence in these expectations. The stock's performance and the company's consistent improvement in earnings suggest that investor confidence may have increased as a result of the earnings report. 4. **Stock Performance**: Alcoa's stock soared to a 52-week high, reaching $45.48 and later $46.57, reflecting heightened investor confidence in the company's performance and future prospects. This surge in stock price is a clear indication of positive sentiment among investors. 5. **Market Sentiment**: The overall positive market sentiment, including a remarkable display of resilience and a rally amidst broader market ups and downs, contributed to the heightened confidence in Alcoa's stock. This sentiment is likely to have been bolstered by the company's strong Q4 performance. In conclusion, Alcoa's Q4 earnings surprise, with improved financial metrics and a slight revenue beat, coupled with positive analyst sentiment and stock performance, has likely had a positive impact on investor confidence.