Alcoa Increases Sales but Misses Estimates on Earnings
Jan 10th 2012 9:34AM
Updated Jan 10th 2012 9:36AM
Alcoa (NYS: AA) reported earnings on Jan. 9. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Alcoa beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded, and earnings per share shrank to a loss.
Margins contracted across the board.
Alcoa reported revenue of $6 billion. The 11 analysts polled by S&P Capital IQ looked for revenue of $5.7 billion. Sales were 6% higher than the prior-year quarter's $5.7 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at -$0.03. The 18 earnings estimates compiled by S&P Capital IQ forecast -$0.02 per share on the same basis. GAAP EPS were -$0.18 for Q4 compared to $0.23 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 12.7%, 720 basis points worse than the prior-year quarter. Operating margin was 1.3%, 620 basis points worse than the prior-year quarter. Net margin was -3.2%, 780 basis points worse than the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods.
What does the future hold?
Next quarter's average estimate for revenue is $5.9 billion. On the bottom line, the average EPS estimate is -$0.04.
Next year's average estimate for revenue is $24.9 billion. The average EPS estimate is $0.58.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 3,316 members out of 3,538 rating the stock outperform, and 225 members rating it underperform. Among 821 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 777 give Alcoa a green thumbs-up, and 44 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 $12.88.
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At the time this article was published 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.
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