After the Bell: Alcoa’s Earnings Blow Analysts Away

Now that Alcoa Inc. (AA) has officially reported earnings, we’re off to the races with earnings season. As earnings reports go, it wasn’t bad. Now, the aluminum producer did post a net loss of $178 million, or $0.16 per share, but when you exclude special items Alcoa Inc. posted adjusted earnings of $0.09 per share, 80% higher than the $0.05 per share expected by analysts. Meanwhile revenue declined from $5.58 billion a year ago to $5.45 billion due to lower aluminum prices.

Even so, the company increased its outlook for global aerospace growth to a range of 8% to 9% and maintained its estimates for the automotive market and the commercial transportation market. Overall, Alcoa expects aluminum demand to rise 7% around the world.

The sizeable earnings surprise gave investors reason to celebrate, so AA shares gapped up following the report. Alcoa is watched closely by many because as an aluminum producer it is considered a bellwether company, a solid measure of economic activity.

As I reported last week, AA is now a B-rated buy (for the first time in quite a while, I might add), and this report starts off earnings season on a solid foot. Alcoa reported earnings along with a smattering of small- and mid-cap plays, but things pick up through the end of this week. Several big-name retailers, restaurants and food and beverage plays are on the calendar:

Wednesday, April 9 Thursday, April 10 Friday, April 10
Before Open Constellation Brands Inc. (STZ) Family Dollar Stores (FDO) Fastenal Co. (FAST)
Pier 1 Imports Inc. (PIR) JPMogan & Chase Co. (JPM)
Rite Aid Corp. (RAD) Wells Fargo & Co. (WFC)
After Close Bed Bath & Beyond Inc. (BBBY)
Ruby Tuesday Inc. (RT)

The fun is just beginning with first-quarter earnings season and I’m ready to take advantage of whatever opportunities may pop up. Are you? Regardless of whether you are, you can follow along with me in this daily blog as I cover breaking headlines, the budding opportunities and big upsets. More details to come!

Sincerely,

Louis Navellier

Louis Navellier

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