Alcoa Earnings: Stock Ticks Below $9

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S&P 500 (NYSE:SPY) component Alcoa Inc. (NYSE:AA) swung to a loss in the third quarter, missing analysts’ forecast. Alcoa is a global producer of aluminum. It is mainly engaged in the production and management of primary aluminum, fabricated aluminum, and alumina combined. It is actively involved in a range of industries, including technology, mining, smelting, and recycling.

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Alcoa Inc. Earnings Cheat Sheet

Results: Reported a loss of $143 million (13 cents per diluted share) in the quarter. The mining (non ferr) had net income of $172 million or 15 cents per share in the year-earlier quarter.

Revenue: Fell 9.1% to $5.83 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Alcoa Inc. fell short of the mean analyst estimate of 3 cents per share. Analysts were expecting revenue of $5.81 billion.

Quoting Management: “Markets seem to be driven more by headlines than fundamentals right now, but Alcoa remains focused on the things within our control”, said Klaus Kleinfeld, Chairman and CEO. “We’re capitalizing on pockets of strong growth and achieving record profitability in our mid and downstream businesses. We’re improving performance in the upstream while optimizing our assets, and across the board we’re driving productivity gains.”

Key Stats:

The company fell short of estimates last quarter after being in line with expectations the quarter before with net income of 6 cents.

Revenue has declined for two quarters in a row. In the second quarter, revenue declined 9.4% to $5.96 billion from the year-earlier quarter.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 22 cents per share to 11 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. Over the past sixty days, the average estimate for the fiscal year has reached 29 cents per share, a decline from 59 cents.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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