Noranda Aluminum Holding Earnings: Here’s Why Investors are Selling Shares Now

Noranda Aluminum Holding Corp. (NYSE:NOR) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 1%.

Noranda Aluminum Holding Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.16 in the quarter versus EPS of $0.11 in the year-earlier quarter.

Revenue: Decreased 5.3% to $352 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Noranda Aluminum Holding Corp. reported adjusted EPS loss of $0.16 per share. By that measure, the company missed the mean analyst estimate of $-0.12. It beat the average revenue estimate of $340.08 million.

Quoting Management: “We are pleased with our performance during second quarter 2013, where we combined stable shipment volumes with reliable production across our integrated platform,” said Layle K. (Kip) Smith, Noranda`s President and Chief Executive Officer. “At the same time, our results were negatively affected by a decline in the LME aluminum price, driven by macroeconomic uncertainty around global manufacturing activity and China`s economy.”

Key Stats (on next page)…

Revenue increased 4.02% from $338.4 million in the previous quarter. EPS decreased to $-0.16 in the quarter versus EPS of $-0.02 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 loss of $0.08 to a loss $0.13. For the current year, the average estimate has moved down from a loss of $0.17 to a loss of $0.32 over the last ninety days.

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)