NEW YORK ( TheStreet) -- "Making the best out of a bad situation" seems to be the recurring theme for Alcoa (AA), which has had a difficult time overcoming a weak aluminum pricing environment. Heading into the company's first-quarter report, there's been plenty of frustration about the lack of movement in the stock. However, some perspective is necessary.While management does have a strong track record of solid performances, they are not magicians. At least not to the extent that they can manufacture demand out of thin air. Besides, it's not as if Alcoa has been outperformed by rivals like Commercial Metals (CMS), either. To that end, given Alcoa's solid fiscal first-quarter results, the company deserves some more time.
Good Start to the Fiscal Year
Granted, these were not great numbers when compared to Alcoa's historical performances. Soft production shipments had a considerable negative impact. And as noted, the mediocre prices of aluminum didn't help. Nonetheless, the company still managed to beat Street EPS estimates. Analysts were expecting 8 cents a share. What's more, although consensus estimates had come down from 10 cents per share, Alcoa still would have logged a beat. But revenue was a different story -- dropping 3% year over year to $5.83 billion. But the miss was only marginal in terms of expectations. The Street was calling for sales of $5.88 billion -- essentially, the margin of the miss was less than 1%. In this environment, that should count as a beat.