The company did not give guidance at this point. Therefore this report is not entirely complete and investors should hold off on judgment until a fuller picture is available. There are consensus estimates of $0.20 in EPS on $5.88 billion in revenue for the third quarter and $0.91 in EPS on $23.61 billion in revenue for the full year.
In terms of its segments Alcoa had:
- Engineered Products and Solutions had after-tax operating income (ATOI) of a record $210 million up 4% year over year
- Global Rolled Products had ATOI of $76 million up 9%
- Alumina had ATOI of $215 million down $6 million sequentially from $221 million, and up $177 million year over year from $38 million
- Primary Metals had ATOI of $67 million, down $120 million sequentially from $187 million, and down $30 million from $97 million
Klaus Kleinfeld, Chairman and CEO, commented on earnings:
We continue to transform Alcoa; our portfolio reshaping combined with smart investments in growth markets is delivering strong results. Our value-add businesses are outperforming, with record profitability in the downstream and exciting profitable growth in the midstream. Recent acquisitions are fully on track, and paired with our innovations we are cementing Alcoa’s position as a premier aerospace and automotive partner. In the upstream, our Alumina business delivered its best first half since 2007 and our lower cost metals business showed resilience in the face of strong market headwinds. Productivity and cash generation were excellent.
At the end of the quarter Alcoa had cash and cash equivalents of $1.31 billion compared to the end of 2014 where it had $1.88 billion.
Shares of Alcoa closed Wednesday down 5.1% at $10.50. Following the release of the earnings report, shares were up 0.8% at $10.58. The stock has a consensus analyst price target of $15.37 and a 52-week trading range of $10.39 to $17.75.
ALSO READ: The Most Expensive Town in Each State
Is Your Money Earning the Best Possible Rate? (Sponsor)
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
