Alcoa Inc Swings to Profit in Q2; Beats Estimates (AA)

After the closing bell on Tuesday afternoon, Alcoa (AA) unofficially kicked off earnings season, reporting its estimates-beating second quarter results.

AA’s Earnings in Brief

Alcoa reported Q2 revenues of $5.84 billion, which are down slightly from last year’s Q2 revenues of $5.85 billion; analysts were expecting revenues of $5.66 billion. Net income for the quarter came in at $138 million, or 12 cents per share, a large improvement over last year’s Q2 loss of $119 million, or 16 cents per share. On an adjusted basis, AA’s earnings for the quarter came in at $216 million, or 18 cents per share, which easily beat analysts’ estimates of 12 cents EPS.

CEO Commentary

Alcoa chairman and CEO Klaus Kleinfeld had the following comments: "Our second quarter results prove Alcoa's transformation is in high gear. We are taking the downstream business to new profitability heights, capturing midstream demand as auto lightweighting accelerates, while continuing to relentlessly improve upstream performance. Our strategy of building a lightweight multi-material innovation powerhouse and a highly competitive commodities business is driving compelling and sustainable shareholder value."

AA’s Dividend

Though Alcoa posted a positive quarter, there was no mention of changes to its dividend. The company cut its quarterly dividend from 17 cents to 4 cents in 2009, and has not raised it since. We expect the company to declare its next dividend in the coming month.

Stock Performance

Alcoa stock closed 11 cents, or 0.75%, higher on Tuesday, and the stock made gains in after hours trading. YTD, AA stock is up a staggering 39.98%.

AA Dividend Snapshot

As of Market Close on July 8, 2014

Click here to see the complete history of AA dividends.