Chipotle may be grabbing the headlines when it comes to earnings, but Arconic (ARNC) - Get Arconic, Inc. Report also had a great quarter. The company beat on earnings and revenue estimates, leading to a small rally in early Wednesday trading.
This was a great quarter, but it was noteworthy seeing David Hess, the interim CEO, lead the call rather than ousted CEO Klaus Kleinfeld, TheStreet's Jim Cramer, manager of the Action Alerts PLUS portfolio, said on CNBC's "Stop Trading" segment.
Arconic and activist hedge fund Elliott Management had been arguing back and forth when Kleinfeld sent a "bizarre" and ill-advised letter to Paul Springer, the fund manager. That letter led to Kleinfeld's departure, which is really too bad because he orchestrated such a great spinoff between Arconic and Alcoa (AA) - Get Alcoa Corp. Report , Cramer explained. Both companies reported "monster" earnings this quarter, he added.
Arconic, a holding in the Action Alerts PLUS portfolio, reported good results in its auto and aerospace businesses. The company is set up to have a great couple of years, Cramer concluded.
At the time of publication, Cramer's Action Alerts PLUS had a long position in ARNC.