Alcoa Beats the Bears and Smashes Analyst Expectations
Alcoa Inc. (NYSE:AA) — the world’s third-largest producer of aluminum — closed Tuesday’s regular session down 0.47 percent but has advanced over 3 percent in pre-market trading this morning after reporting third-quarter financial results that came in ahead of analyst expectations. Revenue of $5.8 billion is decidedly “solid,” effectively flat on the year despite a 7 percent decline in the cash price of aluminum on the London Mercantile Exchange. Analysts were expecting $5.63 billion.
Adjusted net income of $120 million, or 11 cents per share, smashed analyst expectations of six cents per share. However, including special items (“primarily tied to optimizing the Company’s upstream portfolio”) net income was just $24 million, or 2 cents per share.
“Our performance this quarter shows our repositioning of the Company is on the right path,” said Chairman and CEO Klaus Kleinfeld. “We continued to build our value-add businesses, capturing demand for innovative material solutions across multiple markets. Our commodity business delivered better performance in a tougher market environment, and we continued to reshape the portfolio to lower the cost base. Across the board, productivity was exceptional — achieving our full year target in the first nine months.”