NEW YORK (TheStreet) -- Alcoa (AA) earnings opened the gates for another bull-run Wednesday. The aluminum manufacturer was among the most discussed companies on StockTwits.com early Wednesday morning as the markets continued to edge higher for the second day in a row.
Results were mixed. Though Alcoa's earnings of $0.09 beat consensus estimates by four cents, revenues came in about $110 million shy of the $5.56 billion analysts expected. Still, investors and analysts largely focused on the earnings beat, accepting management's explanation that the shortfall was due to "extreme weather" in North America and temporarily softer aluminum prices.
The stock climbed nearly 4% by 11 a.m. ET. Sentiment was 83% bullish, according to StockTwits' analytics. This morning, Jefferies Group and UBS AG each boosted their Alcoa price targets to $12.50. Stifel Nicolaus upped its target to $15, according to the Analyst Ratings Network.
Goldman Sachs reiterated its buy rating on Alcoa. Analyst Sal Tharani wrote that Alcoa is doing a good job controlling costs as it closes two massive, money-losing smelters. Tharani believes Alcoa will exceed cost cutting targets, helping second quarter EPS beat many analysts' expectations. The consensus target for Alcoa?s stock is $12.23, according to the Analyst Ratings Network. Alcoa traded near $13 at 11:15a.m.
$AA I want it to pass that 13.18 52 week high so bad- Brandon P (@SkullsrageSTOCKS) Apr. 9 at 10:33 AM
Investors also focused on the sector guidance Alcoa provided during its earnings call. They saw good news in the company's expectation of a strong North American heavy-duty truck market, automotive market and global aerospace market.