Early Movers: Alcoa Kicks Off Earnings Season, Cummins to Cut Over 1,000 Jobs
Alcoa (NYSE:AA) unofficially kicked off earnings season after Tuesday’s closing bell. Alcoa reported a loss of $143 million (13 cents per share), compared to $172 million (15 cents per share) a year earlier. Excluding special items, earnings per share came in at 3 cents, above analyst estimates.
Yum! Brands (NYSE:YUM) shares jumped more than 4 percent in early trading. The quick-service food company said net income in the third quarter rose 23 percent to $471 million ($1 per share), compared to $383 million (80 cents per share) a year earlier. David C. Novak, chief executive officer, said, “Very strong sales and profit at all of our divisions, including China, Yum! Restaurants International, India and the U.S., drove 19 percent third quarter EPS growth. Given the strength of our year-to-date results, I’m pleased to report we are raising our full-year EPS growth forecast to at least 13 percent, excluding special Items.” McDonald’s (NYSE:MCD) shares also increased on the results.
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Chevron (NYSE:CVX) shares are trading lower this morning. The oil giant announced that third quarter earnings will be “substantially lower” than in the previous quarter. The lowered outlook is the result of unfavorable foreign currency rates and refining operations. Chevron is set to report its quarterly earnings on November 2.
Shares of Cummins (NYSE:CMI) dropped more than 5 percent in pre-market trading. The heavy-equipment manufacturer lowered its full-year 2012 revenue outlook to approximately $17 billion, compared to its previous guidance of $18 billion. “We continued to see weak economic data in a number of regions during the third quarter increasing the level of uncertainty regarding the direction of the global economy,” explains Tom Linebarger, chief executive officer. The company also expects to cut between 1,000 and 1,500 employees by the end of the year.
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