Alcoa Kicks Off Earnings Season With Penny Beat
NEW YORK (TheStreet) -- Shares of Alcoa (AA) edged up in late trades on Monday after the aluminum producer topped Wall Street's earnings expectations for its second-quarter results by a penny.
The company reported earnings from continuing operations of $61 million, or 6 cents a share, on sales of $5.96 billion. The average estimate of analysts polled by Thomson Reuters was for a profit of 5 cents a share in the June-ended period on revenue of $5.81 billion.
Including one-time items, such as reserves for environmental remediation and charges related to restructuring, Alcoa reported a loss of $2 million, breaking even on a per share basis, in the latest quarter. In the same period a year earlier, the company net income of $322 million, or 28 cents a share, on revenue of $6.59 billion.
"Alcoa maintained revenue strength and solid liquidity by driving high profitability in our mid and downstream businesses and by reducing costs and improving performance in our upstream businesses," said Klaus Kleinfeld, the company's chairman and CEO, in a statement.
"Although aluminum prices are down, the fundamentals of the aluminum market remain sound with strong demand and tight supply, and Alcoa is successfully capitalizing on accelerating demand in high-growth end markets such as aerospace and automotive." The stock was last quoted at $8.78, up 2 cents, on after-hours volume of nearly 1.1 million, according to Nasdaq.com. Based on Monday's regular session close at $8.76, Alcoa shares were up 1.3% so far in 2012. The company, which is the first component of the Dow Jones Industrial Average to report its results each quarter, also said it still expects to see a global aluminum supply deficit in 2012 and reaffirmed a forecast for 7% growth iglobal aluminum demand this year. --Written by Michael Baron in New York.>To contact the writer of this article, click here: Michael Baron.
Select the service that is right for you!
COMPARE ALL SERVICESAction Alerts PLUS
TRY IT FREEJim 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
Dividend Stock Advisor
TRY IT FREENew! $49.95/yr
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
Stocks Under $10
TRY IT FREEDavid 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
Real Money
TRY IT FREE24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
Product Features:
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
Real Money Pro
TRY IT FREEAll 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 + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Options Profits
TRY IT FREEOur 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
