Alcoa (NYSE:AA) Releases Earnings Results, Misses Expectations By $0.21 EPS

Key Points

• Alcoa missed quarterly earnings expectations, reporting EPS of $2.12 versus the $2.33 consensus estimate, a shortfall of $0.21 per share.
• Revenue also came in slightly below forecasts, with $3.97 billion in sales compared with analyst expectations of $3.99 billion.
• Shares fell after the report and analysts remain cautious, with Alcoa trading lower on the day and the overall consensus rating sitting at “Hold.”

Alcoa (NYSE:AA - Get Free Report) posted its quarterly earnings data on Thursday. The industrial products company reported $2.12 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.33 by ($0.21), FiscalAI reports. The company had revenue of $3.97 billion for the quarter, compared to analyst estimates of $3.99 billion. Alcoa had a net margin of 8.27% and a return on equity of 12.57%.

Alcoa Stock Performance

NYSE AA traded down $1.65 during mid-day trading on Thursday, reaching $46.93. 6,348,646 shares of the stock were exchanged, compared to its average volume of 6,409,721. The business's 50 day moving average is $62.40 and its 200-day moving average is $62.64. Alcoa has a 1 year low of $28.11 and a 1 year high of $84.38. The company has a market capitalization of $12.38 billion, a P/E ratio of 11.88, a P/E/G ratio of 0.52 and a beta of 1.63. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.88 and a current ratio of 1.48.

Alcoa Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, June 5th. Investors of record on Tuesday, May 19th were paid a $0.10 dividend. This represents a $0.40 annualized dividend and a dividend yield of 0.9%. The ex-dividend date was Tuesday, May 19th. Alcoa's payout ratio is currently 10.13%.

Institutional Investors Weigh In On Alcoa

Several hedge funds have recently modified their holdings of the company. Dimensional Fund Advisors LP increased its stake in shares of Alcoa by 4.2% in the 4th quarter. Dimensional Fund Advisors LP now owns 11,580,803 shares of the industrial products company's stock valued at $615,428,000 after purchasing an additional 462,243 shares in the last quarter. State Street Corp increased its position in shares of Alcoa by 6.7% in the third quarter. State Street Corp now owns 11,458,529 shares of the industrial products company's stock valued at $376,871,000 after buying an additional 721,063 shares in the last quarter. L1 Capital Pty Ltd raised its stake in shares of Alcoa by 22.3% during the 3rd quarter. L1 Capital Pty Ltd now owns 5,887,699 shares of the industrial products company's stock worth $193,646,000 after buying an additional 1,073,357 shares during the period. AQR Capital Management LLC lifted its position in shares of Alcoa by 153.4% during the 4th quarter. AQR Capital Management LLC now owns 4,134,425 shares of the industrial products company's stock valued at $219,703,000 after buying an additional 2,503,132 shares in the last quarter. Finally, Maple Rock Capital Partners Inc. acquired a new stake in Alcoa in the 4th quarter valued at $173,412,000. 82.39% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several equities research analysts have recently commented on the stock. Bank of America lowered their price objective on shares of Alcoa from $57.00 to $51.00 and set an "underperform" rating for the company in a research note on Thursday, July 9th. Morgan Stanley reaffirmed an "equal weight" rating and set a $53.00 target price (down from $79.00) on shares of Alcoa in a report on Wednesday, July 8th. JPMorgan Chase & Co. reduced their price target on shares of Alcoa from $70.00 to $55.00 and set a "neutral" rating for the company in a research report on Thursday, July 9th. B. Riley Financial dropped their price objective on shares of Alcoa from $92.00 to $80.00 and set a "buy" rating on the stock in a report on Tuesday, July 7th. Finally, BMO Capital Markets raised their target price on shares of Alcoa from $65.00 to $75.00 and gave the stock a "market perform" rating in a report on Thursday, April 9th. Five research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $64.91.

Alcoa Company Profile

Alcoa Corporation is a global industry leader in the production and management of aluminum, offering an integrated value chain that spans bauxite mining, alumina refining, primary aluminum smelting and the fabrication of value-added products. The company's operations are organized into segments that include raw material extraction, chemical processing and the manufacture of metal mill products and engineered solutions.

Alcoa's product portfolio serves diverse end markets such as aerospace, automotive, packaging, construction, electrical and industrial applications.

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