Kaiser Aluminum Earnings: Everything You Must Know Now

Kaiser Aluminum Corporation (NASDAQ:KALU) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Kaiser Aluminum Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 14.15% to $0.91 in the quarter versus EPS of $1.06 in the year-earlier quarter.

Revenue: Decreased 4.72% to $328.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Kaiser Aluminum Corporation reported adjusted EPS income of $0.91 per share. By that measure, the company missed the mean analyst estimate of $0.94. It missed the average revenue estimate of $352.57 million.

Quoting Management: “As we had anticipated, our first half 2013 value added revenue and adjusted EBITDA margin, while reflecting the impact of mild headwinds, were solid when compared to a record first half 2012,” said Jack A. Hockema, President, CEO and Chairman. “During the second quarter we continued to experience an inventory overhang for our aerospace applications resulting from supply chain over-reaction in late 2011 and early 2012 to the airframe manufacturer’s rate readiness initiatives. We expect the situation to begin to abate somewhat in the second half of 2013 as overall aerospace demand remains strong.”

Key Stats (on next page)…

Revenue decreased 2.52% from $337.4 million in the previous quarter. EPS decreased 11.65% from $1.03 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 $1.11 to a profit $1.08. For the current year, the average estimate is a profit of $4.14, which is the same with that ninety days ago.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)