Alcoa reported higher-than-expected revenue in its first quarterly results after the metals company split into two in November, helped partly by a rise in alumina prices.
The producer of aluminium, alumina and bauxite also said it expects a 4% growth in global aluminium demand in 2017 even as the market remains modestly oversupplied.
The stock has risen 42% since Donald Trump's victory in the November 8 US presidential election.
Alcoa's results come at an interesting time for the global aluminium industry.
The Chinese government's stimulus to boost the economy have lifted demand. Added to that, a stimulus package proposed by Trump could further help aluminium producers such as Alcoa.
But there is also the risk of a trade war with China after the outgoing Obama administration launched a new complaint earlier this month against Chinese aluminium subsidies at the World Trade Organisation.
Alcoa said it expects a 6% increase in demand from China, driven by packaging, electrical, transportation sectors.
The company said it expects bauxite and alumina markets to be relatively balanced in 2017, and "a modest" global aluminium surplus of 400,000-800,000 metric tons due to higher output in top producer China.
Alcoa generated $2.54 billion in revenue in the quarter, beating the average analyst estimate of $2.46 billion, according to Thomson Reuters.
The New York-based company reported a net loss of $125m, or 68 cents per share, for the fourth quarter ended December 31.
"Rising alumina and aluminium prices improved the bottom line," the company's chief executive Roy Harvey said in a statement, adding that margins doubled in the company's alumina segment.
Aluminium prices climbed to a 20-month peak yesterday after reports of potential capacity cuts in China.
Alcoa's spun-off unit Arconic, which provides aluminium and titanium alloys used in planes and cars, is expected to report later this month.
