NEW YORK (TheStreet) -- Alcoa (AA - Get Report) shares are up 1.75% to $8.13 in after-hours trading on heavy trading volume Monday, following the aluminum producer's latest quarterly results reported after today's closing bell.
Profit came in above estimates while revenue missed. For the fourth quarter of fiscal 2015, the company earned 4 cents a share, topping analysts' expectations of 2 cents a share.
Revenue came in at $5.25 billion, slightly under projections of $5.29 billion.
During the same quarter last year, the company earned 33 cents a share on revenue of $6.38 billion.
TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio, commented on Alcoa earnings saying: "It's too cheap, but no one cares right now...not until they see the split then they will. I would get ahead of it."
In the earnings report, CEO Klaus Kleinfeld said, "2015 was a pivotal year for Alcoa. We substantially strengthened our aerospace offerings through innovations and acquisitions, and our customers responded favorably, awarding us $9 billion in aerospace contracts; and we continued to ramp up our automotive business and shift the midstream to a higher-margin product mix."
Specifically, the company's aerospace segment accelerated with record sales and a $4 billion string of major contract wins. This includes multi-year agreements with The Boeing Co. (BA) and General Electric (GE) unit GE Aviation for blades, vanes and structural parts.
Earlier today the company said it signed a long-term contract with GE Aviation valued at over $1.5 billion. Under the deal, Alcoa will supply advanced nickel-based superalloy, titanium and aluminum components for a broad range of GE Aviation engine programs.
While the company saw several positives during the recent quarter, it was challenged by lower alumina and aluminum prices.
In the second half of 2016, Alcoa is planning to separate into two publicly-traded companies, which was announced in September. The company keeping the Alcoa name will focus on upstream products, including five business units--bauxite, alumina, aluminum, casting and energy. The other company will focus on engineered products, which include the aerospace and automotive segments.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate ALCOA INC as a Hold with a ratings score of C. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, notable return on equity and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including poor profit margins and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: AAAA data by YCharts