Shares jump after Alcoa posts surprise 3Q profit
HARTFORD, Conn. — Shares of Alcoa Inc. rose Thursday, a day after the aluminum maker surprised Wall Street with a third-quarter profit and an optimistic forecast for worldwide aluminum demand.
For the first time in nine months, the aluminum maker returned to profitability, earning $77 million, or 8 cents per share, for the three months ended Sept. 30. That compared with profit of $268 million, or 33 cents per share, a year earlier.
Excluding restructuring charges, Alcoa’s earnings in the latest quarter amounted to 4 cents per share, easily beating Wall Street expectations of a loss of 9 cents per share. Analysts typically exclude one-time charges in its estimates.
Alcoa also forecast an 11 percent increase in worldwide aluminum demand in the second half of the year, fueled partly by growth in China. The lightweight metal is used in everything from airplanes to cars to houses.
Standard & Poor’s upgraded Alcoa shares Thursday to “Buy” from “Sell” and raised its 12-month target price to $18 from $11.
The ratings agency and two analysts increased their 2010 profit estimates for the Pittsburgh company.
Analyst H. Fraser Phillips of RBC Capital Markets raised his 2010 profit estimate to 33 cents per share from 19 cents. He cited Alcoa’s “more rapid achievement” of cost targets than he had assumed.
Citi Investment Research analyst Brian Yu doubled his 2010 estimate to 48 cents per share from 24 cents per share.
And Standard & Poor’s increased its 2010 estimate to 88 cents per share from 47 cents on cost-cutting and a gradual improvement in the aluminum market.
Analysts surveyed by Thomson Reuters expect Alcoa to earn 49 cents per share in 2010.
Phillips said Alcoa’s near-term outlook remains weak. The company expects its fourth quarter to benefit from additional cost-cutting and lower prices.
“However, energy costs are rising, the company is cautious on all rolled product end-use markets, the only engineered products market where it expects an improvement is commercial transport and seasonal shutdowns are expected to hurt results,” he said.
Yu said he continues to estimate a profit in the fourth quarter on better alumina pricing.
Shares rose 50 cents, or 3.5 percent, to $14.70 in morning trading.
Related News
Alcoa reports surprise 3rd-quarter profit of $77M, forecasts higher global aluminum demandOctober 7th, 2009 Alcoa posts 3Q profit of $77M on cost cutsPITTSBURGH — Alcoa Inc., the largest U.S. aluminum producer, on Wednesday said it returned to profitability after three consecutive quarterly losses, helped by cost-cutting and rising orders from automakers and other big manufacturers.
Alcoa posts surprise 3rd-quarter profit of $77M; forecasts higher global aluminum demandOctober 7th, 2009 Alcoa returns to profit as cost cuts, sales helpPITTSBURGH — Painful cost-cutting and rising sales to automakers helped the nation's largest aluminum producer return to profitability for the first time in nine months. Alcoa Inc. on Wednesday also forecast an 11 percent increase in worldwide aluminum demand in the second half of the year, fueled partly by robust growth in China.
Jabil Circuit posts lower 4th-quarter profit but results surpass analysts' expectationsSeptember 30th, 2009 Jabil posts lower 4Q profit but surpasses StreetST. PETERSBURG, Fla.
General Mills first-quarter financial performance at a glanceSeptember 23rd, 2009 General Mills 1Q Results at a GlanceHOW THEY DID: Minneapolis-based General Mills Inc. earned $420.6 million, or $1.25 per share, for the quarter that ended Aug.
Nordson shares rise on strong outlook, analyst raises estimates but reiterates "Hold" ratingAugust 21st, 2009 Nordson shares rise on strong outlookNEW YORK — Shares of Nordson Corp., which makes equipment for applying adhesives and coatings to packaging, autos and appliances, rose Friday after its third-quarter profit beat expectations and it issued a better-than-expected forecast. But KeyBanc analyst Matt J.
NetApp posts higher 1st-quarter profit, names Tom Georgens new CEOAugust 19th, 2009 NetApp posts higher 1Q profit, names new CEOSUNNYVALE, Calif. — Data storage company NetApp Inc.
Agilent posts 3Q loss on charges, but adjusted profit top estimates, issues strong outlookAugust 17th, 2009 Agilent Tech posts better-than-expected 3Q resultsSANTA CLARA, Calif. — Testing instrument maker Agilent Technologies Inc.
Shares of Monsanto drop on warnings of weak glyphosate business, analysts cut 2010 estimatesAugust 14th, 2009 Monsanto shares tumble on strained glyphosate unitNEW YORK — Shares of Monsanto Co. fell on Friday, a day after the world's largest seed maker warned of weakness in its glyphosate business, prompting analysts to trim 2010 profit estimates.
ON Semiconductor posts 2Q loss on lower revenue, charges but numbers top analysts' estimatesAugust 6th, 2009 ON Semiconductor posts 2Q loss as revenue fallsPHOENIX — Chip maker ON Semiconductor Corp. reported a loss for the second quarter after booking restructuring and other charges as revenue fell.
MBIA surprises investors with 2Q profit; shares riseAugust 5th, 2009 MBIA posts surprise profit in 2QArmonk, N.Y. — Bond insurer MBIA Inc.
Amkor posts 86 percent decline in 2nd quarter profit, but results beat Wall Street estimatesJuly 30th, 2009 Amkor 2Q profit declines 86 percent as sales dropCHANDLER, Ariz. — Microchip assembly and test company Amkor Technology Inc.
Baidu posts higher 1st-quarter profit, revenue, shares jump after-hoursApril 28th, 2009 Baidu posts higher 1Q profit, revenueNEW YORK — Baidu Inc., which runs China's most popular search engine, said Monday its first-quarter profit grew, boosted by higher online marketing revenue. The results sent the Beijing-based company's American Depositary shares higher in after-hours trading.
SonicWall reports 1st-quarter profit as costs declineApril 27th, 2009 SonicWall posts 1Q profit, lower revenueSUNNYVALE, Calif. — Network security technology company SonicWall Inc.
Supervalu loses $201M in 4th-quarter on charges, but adj. results beat analysts' estimatesApril 23rd, 2009 Supervalu loses $201 million in 4th-quarterMINNEAPOLIS — Supervalu Inc., one of the nation's largest grocery chains, says it lost $201 million in its fiscal fourth-quarter mostly because of hefty goodwill and asset impairment charges. Adjusted results managed to top analysts' estimates.
SanDisk posts loss in first-quarter but tops estimates; revenue falls 22 percent, shares riseApril 22nd, 2009 SanDisk posts loss in 1Q, but tops estimatesMILPITAS, Calif. — SanDisk Corp., a supplier of flash memory cards installed in cell phones and digital cameras, on Tuesday reported a net loss for the first quarter as revenue fell by 22 percent.
Loading ...