Alcoa Inc. (NYSE: AA) may no longer be a Dow Jones Industrial Average component, but investors are still trying to use the company as a harbinger for earnings season. The aluminum giant beat earnings on soft revenues, a tone that could possibly remain the norm again this earnings season.
Earnings came in at $0.09 per share on $5.45 billion in revenue, versus a Thomson Reuters consensus estimate of $0.05 in earnings per share and $5.55 billion in revenue. The whisper number was $0.07 to $0.08 per share. Alcoa’s net loss after items was $178 million, or $0.16 per share.
Alcoa also signaled that aluminum prices were down 8% from a year ago, and the company ended the period with $665 million in cash on hand.
Alcoa said that its end market growth remains solid. The company talked up current auto demand and industrial volumes, even as its pricing remains an issue ahead. Alcoa did say that it is targeting $200 million in after-tax earnings from its engineered products and solutions unit.
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We already showed its business unit reporting in Tuesday’s earnings report. Alcoa shares closed up six cents at $12.53 on Tuesday, against a 52-week range of $7.63 to $13.18. Shares were initially up 1% around $12.65 after the report, and the stock is trading up around $12.87 in early Wednesday trading indications. Alcoa’s consensus price target ahead of the formal earnings report was $10.73 per share, yet Sterne Agee said Alcoa could rise to $15.
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