Earnings Cheat Sheet: Alcoa (AA) Revenues Jump 15%, Improves Forecast

The first bellwether Dow component of the third quarter of 2010 reported earnings today. Wall Street is cheering the report with a bid to the upside after-the-bell. Here’s the Alcoa (AA) earnings breakdown:

Earnings: Q3 profits of $.06 vs. $.06 consensus and a gain of $.08 in Q3 last year, or a drop of 25% in profits Year-over Year. Alcoa’s numbers were in-line with analyst expectations.

Revenue: Increased 15% Year-over-Year t0 $5.3 Billion this year, versus $4.95 Billion consensus, passing analyst expectations by a wider-than-expected margin. The double digit rise in revenues are a strong bright spot in Alcoa’s third quarter earnings report.

Klaus Kleinfeld, Alcoa Chairman and CEO stated, “We see markets strengthening and have increased our 2010 global aluminum consumption forecast to 13 percent from 12 percent. In countries such as China, Brazil, India, and Russia, more and more people are moving into the middle class, driving demand in building and construction, transportation, and packaging. This trend favors aluminum as it is light, strong, and infinitely recyclable.”

Comment: Shares of Alcoa (AA) are trading up 4% following the company’s earnings release after-the-bell, trading at $12.70 per share, compared to the closing price of $12.20.

Following the earnings release, Alcoa (AA) shares are still trading below the 200-day moving average on the 1-year chart above. However, Alcoa’s rising share price is now further deviated higher than the 50-day moving average. Alcoa’s share price is now trading at levels not seen since early May of this year. With CEO comments gesturing toward improved demand and an improving market across the globe, Alcoa is being further supported by share buyers after-hours.

Disclosure: No positions held in the companies mentioned.