AAll­c­cooaa bbeeaatt ccoonnsseennssu­uss,, bbu­utt iiss iitt een­noou­ug­ghh??

Financial Mirror (Cyprus) - - FRONT PAGE -

Alu­minium gi­ant Al­coa Inc. (NYSE: AA) kicked off the earn­ings sea­son on Mon­day and re­ported its fourth-quar­ter earn­ings as $0.33 in earn­ings per share and $6.38 bln in rev­enue. This rep­re­sented an in­crease in EPS of $0.29 and a 14% growth in rev­enue from the pre­vi­ous year, above con­sen­sus es­ti­mates of $0.25 and $5.99 bln.

Al­coa pro­jected a strong year for global aero­space sales – to in­crease 9% to 10%. Au­to­mo­tive pro­duc­tion and sales are also ex­pected to rise in the range of 2% to 4%, driven by re­place­ment de­mand and low lend­ing rates in North Amer­ica. The company also projects that global alu­minium de­mand will grow 7% in 2015, com­pared to what it had grown in 2014.

“As we built out our value-add busi­nesses, we gained prof­itable share across ex­cit­ing down­stream growth mar­kets and cap­tured aero­space and au­to­mo­tive growth in the mid­stream,” ex­plained Al­coa Chair­man and CEO Klaus Kle­in­feld, com­ment­ing on the year.

“On the com­mod­ity side, our hard work re­shap­ing the port­fo­lio con­tin­ues to pay off with im­proved per­for­mance for the 13th quar­ter in a row. In 2014, we de­liv­ered Al­coa’s strong­est op­er­at­ing re­sults since 2008; we en­ter 2015 on solid foot­ing, poised to con­tinue trans­form­ing and grow­ing.”

The most re­cent an­a­lyst call was No­mura up­grad­ing Al­coa to a Buy rat­ing from Neu­tral and rais­ing its price tar­get to $23 from $15. There are a few things about this up­grade to con­sider. First, it has an im­plied up­side of 42.2% from Mon­day’s close. Also, this an­a­lyst call came out the day earn­ings were re­leased, sig­nal­ing some strong op­ti­mism. No­mura’s tar­get was short of the high­est an­a­lyst price tar­get of $25.50, which im­plied an up­side of 57.7%.

Shares of Al­coa closed Mon­day up 0.4% at $16.17. Fol­low­ing the re­lease of the earn­ings re­port, shares were up over 1% at $16.36 in post mar­ket trad­ing.

The company’s stock has a con­sen­sus an­a­lyst price tar­get of $18.72 and a 52-week trad­ing range of $10.05 to $17.75. Al­coa’s mar­ket cap is $19 bln.

Newspapers in English

Newspapers from Cyprus

© PressReader. All rights reserved.