The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Alcoa beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Alcoa recorded revenue of $5.83 billion. The 11 analysts polled by S&P Capital IQ expected a top line of $5.54 billion on the same basis. GAAP reported sales were 9.1% lower than the prior-year quarter's $6.42 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.03. The 18 earnings estimates compiled by S&P Capital IQ averaged $0.00 per share. GAAP EPS were -$0.13 for Q3 against $0.15 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 9.7%, 790 basis points worse than the prior-year quarter. Operating margin was -1.4%, 830 basis points worse than the prior-year quarter. Net margin was -2.5%, 520 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $5.68 billion. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $23.31 billion. The average EPS estimate is $0.28.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 3,426 members out of 3,658 rating the stock outperform, and 232 members rating it underperform. Among 716 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 669 give Alcoa a green thumbs-up, and 47 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 $11.07.
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