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.
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 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.
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.
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.
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.