Alcoa Inc (AA) Reports Earnings Beat – Shares Up in After Hours

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Shares of Alcoa Inc (NYSE:AA) are trading up $0.22 or 3.25% after the lightweight metals manufacturer reported fourth quarter earnings better than analysts had been expecting.

Alcoa Inc (NYSE:AA) reported an EPS of $0.04 per share on $5.25 billion in revenue. While they beat analysts by $0.02 on the EPS number, revenue came in a bit shy. Analysts were expecting $5.43 billion in revenue for the quarter. While this is good news for investors, at the same time last year things were much better. Following the fourth quarter of 2014, Alcoa Inc (NYSE:AA) reported an EPS of $0.33 on 6.38 billion in revenue.

A few other numbers which are key to this report are as follows:
-Revenue for Global Rolled Products: $52 million
-Revenue for Engineered Products and Solutions: $1.4 billion
-Revenue for Upstread Businesses: $2.4 billion
-Expects a global aluminum deficit of 1.2 million metric tons in 2016

The stock decreased 0.99% or $0.08 during the last trading session, hitting $7.99. About 39.61M shares traded hands or 38.25% up from the average. AA has declined 35.02% since June 5, 2015 and is downtrending. It has underperformed the S&P500 by 30.33%.

From a total of 9 analysts covering Alcoa Inc. (NYSE:AA) stock, 6 rate it a “Buy”, 0 a “Sell”, and 3 a “Hold”. This means that 67% of the ratings are positive. The highest target price is $15 while the lowest target price is $9.50. The mean of all analyst targets is $13.29 which is 66.33% above today’s ($7.99) stock price. Alcoa Inc. was the topic of 12 analyst reports since August 4, 2015 according to the firm StockzIntelligence Inc. Stifel Nicolaus maintained shares on December 22 with a “Buy” rating. Gabelli initiated shares with a”Buy” rating and a $14.50 target share price in their report from an October 5. Nomura downgraded AA stock in a recent report from November 9 to a “Neutral” rating. S&P Research maintained the rating on September 29. S&P Research has a “Buy” rating and a $15 price target on shares. Finally, Deutsche Bank maintained the stock with a “Buy” rating in a report they issued on an October 5.

The institutional sentiment increased to 1.26 in Q2 2015. It’s up 0.19, from 1.07 in 2015Q2. The ratio is positive, as 84 funds sold all their Alcoa Inc shares they owned while 166 reduced their positions. 72 funds bought stakes while 244 increased their total positions. Institutions now own 871.42 million shares which is 11.97% more than the previous share count of 778.25 million in 2015Q2.

Oak Hill Capital Management Llc holds 21.59% of its total portfolio in Alcoa Inc, equating to 26.09 million shares. Baupost Group Llc Ma owns 52.27 million shares representing 8.41% of their total US portfolio. Moreover, Washington State Investment Board has 6.09% of their total portfolio invested in the company, equating to 397,690 shares. The New York-based D.C. Capital Advisors Ltd has a total of 5.34% of their portfolio invested in the stock. Icm Asset Management Inc Wa, a Washington-based fund reported 279,986 shares owned.

Since April 13, 2015, the stock had 2 insider buys, and 0 insider sales for a total of $85,360 in net activity. Sorrell Martin bought 4,435 shares worth $42,109. Tata Ratan bought 4,555 shares worth $43,251. Harvey Roy Christopher bought 57 shares worth $744.

Alcoa Inc. is engaged in lightweight metals engineering and manufacturing. The company has a market cap of $10.56 billion. The Firm operates in four divisions: Alumina, Primary Metals, Global Rolled Products, and Engineered Products and Solutions. It has 20.39 P/E ratio. The Company’s products, which include aluminum, titanium and nickel, are used in aircraft, automobiles, commercial transportation, packaging, building and construction, gas and oil, defense, consumer electronics, and industrial applications across the world.

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