Alcoa Earnings: Here’s Why Investors are Bidding Shares Now

Dow component Alcoa, Inc. (NYSE:AA) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 1.65%.

Earnings season is back and more important than ever. Get our newest CHEAT SHEET stock picks now.

Alcoa, Inc. Earnings Cheat Sheet

Results: Net income increased to $242 million (21 cents per diluted share) in the quarter versus a net loss of $191 million in the year-earlier quarter.

Revenue: Decreased 1.49% to $5.9 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Alcoa, Inc. reported adjusted net income of 21 cents per share. By that measure, the company beat the mean analyst estimate of $0.06. It beat the average revenue estimate of $5.6 billion.

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According to Alcoa’s earnings press release, “the midstream and downstream businesses continued to turn in record performance, hitting new profitability highs.”

Turn the corner to see some more hot-off-the-press earnings insights our of Alcoa today…

Quoting Management: “Alcoa hit record profitability in our mid and downstream businesses, and continued to drive efficiency in our upstream businesses in the fourth quarter, all while cutting debt and maintaining our cash position,” said Klaus Kleinfeld, Alcoa Chairman and Chief Executive Officer. “We overcame volatile metal prices and global economic instability to deliver on our targets for the fourth year in a row. We enter 2013 in a strong position to maximize profitable growth.”

Key Stats:
Revenue increased 1.15% from $5.83 billion in the previous quarter. Net income increased to $242 million in the quarter versus a net loss of $143 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.16 to a profit $0.13. For the current year, the average estimate is a profit of $0.24, which is the same with that ninety days ago.

Alcoa (NYSE:AA) sees global growth in the following areas in 2013:

Aerospace: 9-10 percent

Automotive: 1-4 percent

Commercial Transportation: 2-7 percent

Packaging: 2-3 percent

Building and Construction: 4-5 percent

Industrial gas turbine: 3-5 percent

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(Company fundamentals provided by Xignite Financials.)

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