For the first time in the company’s last 3 quarters, Alcoa Inc. (AA: 10.87 0.00 0.00%) has beaten quarterly earnings estimates. The so-called “lead-off hitter” of every quarterly earnings season, Alcoa posted a gain of 13 cents per share, outshining the zacks Consensus Estimate of 12 cents, on revenues of $5.2 billion in the company’s fiscal 2nd quarter.Alcoa shares had closed down 7 cents on the day, and is currently trading down near its 52-week low. In fact, Alcoa is the worst-performing Down component year-to-date, having fallen over 32% since New Year’s 2010.
And although Alcoa did, in fact, beat estimates for the first time since the September 2009 quarter, the 12 cents per share Zacks consensus estimate had been cut in half from 24 cents per share at the start of the quarter. Lower aluminum prices, higher input costs, company restructuring charges and fears of lesser demand as the global economy continues to struggle in a highly cyclical aluminum and alumina industry have kept a negative tone on AA stock among analysts and investors.
That said, the good news in Alcoa’s second quarter earnings report is that the company has increased its global aluminum consumption forecast for this year from 10% to 12%. And with today’s earnings beat, Alcoa has posted a major year-over-year earnings improvement. Second quarter 2009 results came in at -26 cents per share, as opposed to today’s +13 cents.
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