Alcoa Beats Up on Analysts Yet Again

Seth Jayson, The Motley Fool
Updated

Alcoa (NYS: AA) reported earnings on July 8. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended June 30 (Q2), Alcoa met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped slightly. Non-GAAP earnings per share grew. GAAP earnings per share.


Gross margins grew, operating margins grew, net margins contracted.

Revenue details
 Alcoa notched revenue of $5.85 billion. The 10 analysts polled by S&P Capital IQ predicted revenue of $5.83 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $0.07. The 18 earnings estimates compiled by S&P Capital IQ averaged $0.06 per share. Non-GAAP EPS of $0.07 for Q2 were 17% higher than the prior-year quarter's $0.06 per share. GAAP EPS were -$0.11 for Q2 against $0.00 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 15.7%, 140 basis points better than the prior-year quarter. Operating margin was 4.3%, 100 basis points better than the prior-year quarter. Net margin was -2.0%, 200 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 3,393 members out of 3,644 rating the stock outperform, and 251 members rating it underperform. Among 723 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 676 give Alcoa a green thumbs-up, and 47 give it a red thumbs-down.

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The article Alcoa Beats Up on Analysts Yet Again originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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