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Alcoa Shares Rise on Q1 Results (AA)

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Alcoa IncorporationShares of Alcoa Inc. (NYSE: AA) are gaining in trading today after the aluminum producer reported better than expected earnings for the first quarter of 2012.

Alcoa shares rose to an intra-day high of $10.10 in early trading, and at last check, the stock was trading 8.15% higher at $10.08 on above average volume of 27.27 million.


After market close on Tuesday, New York City-based Alcoa kicked off the latest earnings season by reporting better than expected earnings. The company reported first-quarter profit of $0.09 per share, compared with Street estimates of a small loss.

Alcoa’s net income for the quarter was $94 million, compared with a loss of $191 million reported in the fourth quarter of 2011. However, on a year-over-year basis, the company’s net income fell 70%.

Revenue for the quarter rose from $5.95 billion to $6 billion, beating analysts’ estimate of $5.77 billion.

Alcoa is seen as a barometer for the economy and a better than expected earnings from the company has boosted investors’ confidence. Looking ahead, Alcoa expects demand for aluminum used in autos, heavy trucks and trailers to remain robust in North America.

Klaus Kleinfeld, Chairman and CEO of Alcoa, said that performance rebounded strongly in the first quarter due to the company’s proactive cash sustainability actions, relentless focus on profitable growth, and stabilizing markets.

Kleinfeld further said that Alcoa is successfully executing on its aggressive strategy to move down the cost curve in its upstream businesses and drive to record profitability in its midstream and downstream businesses. He added that challenges remain in the economy, but the company is approaching them better prepared than ever before.

 

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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