Earnings Review and Notes - Alcoa
24 Apr, 2015, 09:30 ET
LONDON, April 24, 2015 /PRNewswire/ --
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Investor-Edge.com has issued free earnings review on Alcoa Inc. (NYSE: AA). On April 08, 2015, the company reported its financial results for Q1 FY15 (period ended March 31, 2015). Click on http://get.Investor-Edge.com/pdf/?c=Alcoa&d=24-Apr-2015&s=AA to read our free earnings review on Alcoa Inc. (Alcoa). During Q1 FY15, the company's sales improved 7% Y-o-Y. Further, adjusted net income attributable to Alcoa for Q1 FY15 came in at $363 million, or $0.28 per diluted share. Our free coverage report can be accessed at:
During Q1 FY15, Alcoa's sales increased to $5.82 billion from $5.45 billion in Q1 FY14, primarily driven by organic growth in automotive and aerospace volume. However, positive market effects in Q1 FY15 were offset by capacity reductions and portfolio changes. Further, the company's Q1 FY15 sales missed Bloomberg analysts' estimates of $5.94 billion.
For Q1 FY15, net income attributable to Alcoa stood at $195 million, or $0.14 per diluted share, compared to net loss attributable to Alcoa of $178 million, or $0.16 loss per diluted share, in Q1 FY14. However, net income attributable to the company for Q1 FY15 missed Bloomberg analysts' forecast of $313 million, or $0.24 per diluted share. Free research on AA can be downloaded in PDF format at:
In Q1 FY15, Alcoa reported cash used in operations of $175 million compared to cash used in operations of $551 million in Q1 FY14. In the reported quarter, the company's negative free cash flow was $422 million compared to negative free cash flow of $760 million in Q1 FY14. As of March 31, 2015, the company had cash and cash equivalents balance of $1.19 billion.
Chairman and CEO of Alcoa, Klaus Kleinfeld, said that the company's Q1 FY15 results show its transformation is moving at ongoing high speed and is fully on course. The company is organically and inorganically broadening its innovative, multi-material value-add businesses, bringing new capabilities and materials to its aerospace and automotive offerings, and taking swift action in the upstream, making it more competitive, he added. Sign up and read the free analyst's notes on AA at:
In its FY15 guidance, Alcoa expects global aerospace sales growth of 9% to 10%, driven by robust deliveries across the large commercial aircraft, regional jet and business jet segments. For its automotive segment, Alcoa projects production to increase by 2% to 4% in FY15, with a 1% to 4% rise in North America. It also anticipates a 5% to 7% global sales growth in the commercial building and construction market, 1% to 3% global airfoil market growth in the industrial gas turbine market, and a 2% to 3% global sales increase in the packaging market.
The company sees increasing orders in the North American heavy duty truck and trailer market, and projects growth of 6% to 8% in FY15, up from the previous growth forecast of 3% to 7%. However, with weakness in China, Europe and Brazil, the global heavy duty truck and trailer market is expected to decline 2% to 4% in FY15. Moreover, Alcoa continues to anticipate robust global aluminum demand growth in FY15 of approximately 3.5 million metric tons, equaling 6.5% growth and reaching a new record high of 57.5 million metric tons. Visit Investor-Edge and access the latest research on AA at:
On the day following earnings release, April 09, 2015, Alcoa's stock lost 3.37% to end the session at $13.21. Since then, the stock has moved both ways. On the last close, Thursday, April 23, 2015, the stock fell 2.80% to close the day at $13.19, after vacillating between $13.10 and $13.42. A total of 45.99 million shares were traded which was significantly above its three months average volume of 24.82 million shares. The stock has advanced 1.46% in the last one month. However, over the past three months, the company's shares have lost 16.31%. Alcoa's shares are trading below their 50-day and 200-day moving averages of $14.01 and $15.65, respectively. Further, the stock traded at a PE ratio of 12.83 and has a Relative Strength Index (RSI) of 51.47.
Sneak Peek to Corporate Insider Trading
In the last one month, there were 11 insider transactions made by 11 individuals. Between April 01, 2015 and April 10, 2015, a total of 31,670 shares of the company were bought at an average price of $13.01 per share, and for a total value of $412,021. The following are some of the above mentioned transactions: Directors at Alcoa, Arthur D. Collins, Jr., and E. Stanley O'Neal, purchased 4,836 shares each at an average price of $12.98 per share; and Ratan N. Tata also a Director at Alcoa, bought 3,405 shares at an average price of $13.14 per share. Complimentary in-depth research on AA is available at:
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