This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Alcoa Misses Wall Street Profit View (UPDATE 1)

Stocks in this article: AA

Updated from 4:25 p.m. ET for added content about the company's outlook, latest stock price.

NEW YORK ( TheStreet) -- Alcoa (AA) fell short of Wall Street's profit view on Tuesday, despite better than expected revenue, sending shares lower in after-hours action.

The Dow component attributed the performance, which represented a sequential decline in both earnings and revenue, to lower metal prices and European market weakness.

The New York-based company reported earnings from continuing operations of $172 million, or 15 cents a share, for its fiscal third quarter ended Sept. 30 on revenue of $6.42 billion. The performance was better than a year-ago profit of $61 million, or 6 cents a share, but down from second-quarter earnings of $326 million, or 28 cents a share.

The average estimate of analysts polled by Thomson Reuters was for a profit of 22 cents a share on revenue of $6.24 billion in the September period.

"Aluminum prices fell in the third quarter, but most markets continued to grow," said Klaus Kleinfeld, the company's chairman and CEO, in a statement. "With the exception of Europe, we saw growth in our end markets, though at a slower rate than in the first half, as confidence in the global recovery faded."

Alcoa said that increasing demand in China would offset declines in Europe, which the company also highlighted as the reason it raised its 2011 growth projection in the region to 17%, up two percentage points.

Alcoa shares were last quoted at $9.78, down 5.1%, on volume of more than 4.6 million, according to Nasdaq.com.

Year-over-year Alcoa said that it saw strong revenue growth for its end markets thanks to its commercial transportation, automotive and aerospace segments. Analysts who spoke with TheStreet correctly predicted positive results in the company's downstream segments .

Kleinfeld backed Alcoa's outlook for growth of 12% in aluminum demand for 2011, saying the company sees a "slower pace in the second half of the year, and reaffirm(s) our long-term forecast for a doubling of aluminum demand by 2020."

-- Written by Joe Deaux in New York.



>To submit a news tip, send an email to: tips@thestreet.com

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs