By: James Simses – Warrior Trading
Stocks moved higher in the final hour of trading Thursday and closed positive for a second straight session as earnings season kicked off!
Alcoa (AA) reported earnings after the bell Wednesday to start the first quarter earnings season. Shares dumped 3.4% to $13.21 as the aluminum producer reported adjusted earnings per share that topped analysts’ estimates in the first quarter as its overall business improved. But revenue dissatisfied as the company expands its business beyond only aluminum.
Alcoa’s report reinforces fears of a weak earnings season. Wall Street analysts expect profits from S&P 500 companies to fall 2.8%, which would be the first year-over-year drop in earnings since the third quarter of 2009, according to Thomson Reuters.
Alcoa is striving to transform itself from an aluminum maker into a supplier for the auto and aerospace industries, making it less receptive to swings in commodity prices. Alcoa had strong operational performance, with revenue up 7% driven by the auto and airspace sector. On the profit side, there was a record performance on upstream and downstream aspect. Analysts were disappointed by the outlook for the company’s rolled metal products, which include sheets used for drinks and food cans.
Alcoa Inc. fell 3.4 percent to $13.21 with 56,715,600 shares traded.
