Alcoa Inc. -AA- reported an 86% jump in net income for the third quarter, but the company sharply missed analysts' expectations amid lower metals prices, setting off a sour start to earnings season.
The Pittsburgh-based company, which makes the bulk of its profit on its bauxite mining and alumina-refining businesses, reported third-quarter net income of $537 million, or 61 cents a share, compared with $289 million, or 33 cents a share, in the year-earlier period. The company's third-quarter earnings from continuing operations were 62 cents a share.
Analysts surveyed by Thomson First Call were expecting earnings of 77 cents a share.
Its sales of $7.6 billion were up 16% from $6.57 billion a year earlier. Aluminum shipments rose to 1.4 million metric tons flat from a year earlier. Analysts were expecting revenue of $7.75 billion for the quarter, according to Thomson First Call.
As the first blue-chip company to report earnings, the company opens the season on a disappointing note. The results are likely to be a stunner for the market, which was anticipating a steady quarter from the industrial bellwether.
Alcoa shares recently fell 6% to $26.51 in after-hours trading, after gaining 1.1% in the regular session to close at $28.29.
Recently, commodity prices have tumbled, and aluminum has been among the hardest hit, falling roughly 20% from all-time highs set in the spring.
"In July, we said the third quarter would be solid, but would reflect the traditional seasonal slowdown and lower metal prices." Alain Belda, Alcoa chairman and CEO, said in a statement. "While the North American automotive and the housing construction markets are softening, most of our downstream markets continue to be strong - especially aerospace and commercial transportation."
Alcoa is redistributing some of its aluminum-production facilities, known as smelters, to regions around the world with cheaper electricity. Aluminum is the second-most power-intensive industry, after paper- and pulp-making.
On Monday, Russia's OAO Rusal announced a three-way merger that would create the world's biggest aluminum producer, dethroning Alcoa.
Mingil põhjusel olid turu ootused Alcoa suhtes ülikõrged ja esimene reaktsioon oli langus 28.29-lt ca 26.30-ni. Aga tuleb arvestada, et enne tulemuste avalikustamist oli aktsia juba ca 1,5 dollari võrra juba kerkinud. Alles eelmisel kolmapäeval oli aktsia hind olnud 26.75.
Aga suure tõenäosusega on nüüd turul optimismi kõvasti vähem.
Aga suure tõenäosusega on nüüd turul optimismi kõvasti vähem.
Aga aktsia hind taastub päris hästi. Pole ime, kui homme ollakse taas üle 27 dollari taseme.