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.
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 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.
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.)
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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