Alcoa +2.5% as earnings top consensus, sees bullish global aerospace market


Alcoa (AA) +2.5% AH after Q1 earnings manage to top Wall Street's modest expectations; adjusted EPS of $0.09 topped estimates but fell short of $0.11 in the year-ago quarter on revenue of $5.45B, below last year's $5.83B.

AA's engineered products and solutions unit, which makes fasteners, truck wheels and parts for jet engines, posted a 9% Y/Y increase in operating income to $189M due to higher volumes for aerospace and commercial transportation.

The primary metals division, which makes raw aluminum, reported an operating loss of $15M vs. a $39M profit a year earlier.

Sees 8%-9% growth in the global aerospace sector, up from its earlier 7%-8% target, on strong demand for both large commercial aircraft and regional jets, as well as the business jet market.

Continues to project 7% global aluminum demand growth in 2014.

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Comments (6)
  • WisPokerGuy
    , contributor
    Comments (1379) | Send Message
     
    Mixed bag is right! How this stock went from $8.50 to $12.50 shocks the heck out of me. Everybody must be chasing the growth projections? A word of caution - Alcoa has been here before (several times) and has disappointed every time.
    8 Apr 2014, 08:23 PM Reply Like
  • Robin Hewitt
    , contributor
    Comments (5551) | Send Message
     
    Material sector is cyclical.
    9 Apr 2014, 01:20 AM Reply Like
  • june1234
    , contributor
    Comments (4407) | Send Message
     
    Loss of $178M, Revenues down 6.5%, stock up AH. Only in America
    9 Apr 2014, 04:14 AM Reply Like
  • Investorix
    , contributor
    Comments (34) | Send Message
     
    About a year ago when the Deutsche Bank analyst downgraded AA and said the stock was going to go to 4.5 dollars a share, I wrote a comment is SA and told him 6 months will prove him wrong. To you WisPokerGuy I say this-- in a year AA will be trading at 17 and you can express your shock again, but expressing shock doesn't make you money.
    9 Apr 2014, 06:15 AM Reply Like
  • WisPokerGuy
    , contributor
    Comments (1379) | Send Message
     
    Thank you for the investment advice, but I'll keep my current positions. My personal philosophy is to invest in companies that actually tend to MAKE money. The stock price for AA can (and will) do whatever it will do. However, anyone who thinks this was a strong quarter is crazy.
    9 Apr 2014, 06:41 AM Reply Like
  • tom bernardi
    , contributor
    Comments (477) | Send Message
     
    good long term hold for the patient investor
    2 Jul 2015, 09:11 AM Reply Like
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