Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

Loading...
Most Recent Stories

ALCOA REPORTS IN-LINE EPS, MISSES REVENUES

I don’t want to place too much emphasis on the Alcoa earnings, but their report highlights some of the potential risks that have been baked into equity prices.  Alcoa reported a solid quarter by almost any measure.  Sales were up 17.8% year over year and Klaus Kleinfeld, Alcoa President and Chief Executive Officer says the environment is in fact improving:

“Our markets are gradually improving and both policy trends and consumer sentiment bode well for aluminum demand.”

Despite the clear improvement, equity investors are now pricing in a nearly flawless quarter for Q1 earnings.  Alcoa’s bottom line of 10 cents EPS was in-line with expectations and the revenue line was shy of the $5.24B estimates.  Alcoa’s EPS are notoriously lumpy, but this was the first time in 11 quarters that they have missed revenue estimates. Analysts are clearly pricing in robust revenue growth.  “In-line” and revenue misses simply won’t cut it after a 16% rally in equities.  Alcoa is by no means a fair measure of the entire market, but it does highlight some of the potential risks that have been baked into equities.

Comments are closed.