Alcoa Beats Estimates:

In the fourth quarter earnings where most of the analysts are expecting low growth for companies in this quarter, Alcoa, the global aluminum giant company has come with good news. In the fourth quarter season, it has been able to beat the expectations in this quarter and looks like this might lift the mood of many investors in the stock markets.

On Tuesday, Alcoa Company released its earnings. They are very much optimistic about the profit figure & also happy because this is just the rate they expected to achieve on fourth quarter earnings season.

Still, some of the analysts are not so happy and comfortable with these results. According to the market analysts, the expected revenue for this Company was $5.9 billion, where the reported figure has shown revenue of $5.6 billion which is lower than estimates.

With this achievement of Alcoa in this quarter, the company’s management is very optimistic. They are hoping that, with such achievements and with Chinese manufacturing sector again reigning in the market, the company will find it easier to generate more revenues and grow stronger in the coming quarters.

While the company is hoping to have very good results in the year of 2013, the economic specialists have a different view about that. They are saying that the debt ceiling debate for the company can slow down its growth potential.

Alcoa Chairman and Chief Executive Officer, Klaus Kleinfeld, on his comments about the earnings, said that- “Alcoa hit record profitability in our mid and downstream businesses, and continued to drive efficiency in our upstream businesses in the fourth quarter, all while cutting debt and maintaining our cash position we overcame volatile metal prices and global economic instability to deliver on our targets for the fourth year in a row. We enter 2013 in a strong position to maximize profitable growth.”

In the fourth quarter season, Alcoa has earned $242 million from continuing operation. From the estimates of stock market, this rate equivalents to $0.21 per share. This earning record has excluded the special items. From only the special items, the company has earned $64 million or the rate equivalents to $0.06 per share.

The company’s revenue has risen up to 1% with approximately $5.9 billion, still this rate is 2% down from what is recorded on fourth quarter earnings of 2011. Analysts say that there is potential that these numbers may rise on a quarter on quarter basis for the company. On the whole, the company has a free cash flow that stands at $535 million.

The achievement of the company is surely showing some silver lining on the dark clouds, since from the beginning of the fourth quarter season, most of the investors were worrying about dismal performances by the blue chip companies in the United States.

On the other hand, in the sector of engineered product & solutions, such earnings results have created a record. Also through the new & special products of the company, the market analysts are forecasting that global aluminum demand can rise to 7% in 2013.

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Category: Finances
Keywords: Alcoa, Earnings season, Clearwire, Dish, Oil, Brent Oil