Alcoa Beats on Revenue, Matches Expectations on EPS

Alcoa (NYSE: AA  ) reported earnings on July 9. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped to zero.

Margins contracted across the board.

Revenue details
Alcoa reported revenue of $5.96 billion. The 12 analysts polled by S&P Capital IQ foresaw a top line of $5.82 billion on the same basis. GAAP reported sales were 9.4% lower than the prior-year quarter's $6.59 billion.

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 $0.06. The 20 earnings estimates compiled by S&P Capital IQ averaged $0.06 per share. GAAP EPS contracted to zero from the prior-year quarter's $0.28.

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 13.6%, 670 basis points worse than the prior-year quarter. Operating margin was 2.6%, 750 basis points worse than the prior-year quarter. Net margin was 0.0%, 490 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $5.84 billion. On the bottom line, the average EPS estimate is $0.08.

Next year's average estimate for revenue is $23.58 billion. The average EPS estimate is $0.31.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 3,436 members rating the stock outperform and 231 members rating it underperform. Among 727 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 686 give Alcoa a green thumbs-up, and 41 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Alcoa is hold, with an average price target of $11.61.

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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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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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  • Report this Comment On July 10, 2012, at 1:25 PM, mikecart1 wrote:

    Alcoa, US Steel, and all the other materials of metals are going to soar someday; the question is what year; it certainly won't happen in today's economy. IMO AA is a great stock to buy now, average down if necessary, and hold for the long run!

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