This Day On The Street
Continue to site
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

Alcoa Delivers Surprise Profit

AA Chart AA data by YCharts

NEW YORK ( TheStreet) -- Shares of Alcoa (AA - Get Report) were getting a lift in late trades after the Dow component reported a surprise quarterly profit, kicking off earnings season in high style.

Excluding one-time items, the aluminum giant posted earnings from continuing operations of $32 million, or 3 cents a share, in its fiscal third quarter ended Sept. 30 with sales totaling $5.83 billion, which is down from $6.42 billion a year ago.

The average estimate of analysts polled by Thomson Reuters was for breakeven results on a per share basis on sales of $5.54 billion in the September-ended period.

The above-consensus performance on the top line came despite a sequential decline in realized aluminum prices of 5%.

"Markets seem to be driven more by headlines than fundamentals right now, but Alcoa remains focused on the things within our control," said Klaus Kleinfeld, the company's chairman and CEO, in a statement. "We're capitalizing on pockets of strong growth and achieving record profitability in our mid and downstream businesses. We're improving performance in the upstream while optimizing our assets, and across the board we're driving productivity gains."

Alcoa, which said it remains "on track" to meet its financial and operational targets for 2012, attributed the strong performance in the third quarter to "continued strong productivity growth across the upstream and downstream segments this quarter, driven by higher utilization rates, process innovations, lower scrap rates, and usage reductions."

Including $175 million in special items related to environmental remediation of the Grasse River in New York State, and the settlement of a civil lawsuit, Alcoa reported a loss from continuing operations of $143 million, or 13 cents a share, for the latest quarter.

The stock was last quoted at $9.19, up 0.66%, on extended volume of more than 1.9 million, according to

Shares of Alcoa, traditionally the first blue chip to report its results, are up about 5% so far in 2012. The broad market is entering what's expected to be a weak earnings season with analysts forecasting a drop of roughly 1.7% in profits for components of the S&P 500, the first year-over-year decline since the third quarter of 2009.

-- Written by Michael Baron in New York.

>To contact the writer of this article, click here: Michael Baron.
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AA $9.52 0.00%
SPY $195.00 0.00%
AAPL $110.38 0.00%
FB $92.07 0.00%
GOOG $626.91 0.00%


Chart of I:DJI
DOW 16,472.37 +200.36 1.23%
S&P 500 1,951.36 +27.54 1.43%
NASDAQ 4,707.7750 +80.6910 1.74%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs