Post-Earnings Coverage - Alcoa

LONDON, January 16, 2015 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings coverage on Alcoa Inc. (NYSE: AA). On January 12, 2015, the company reported its Q4 FY14 and full-year FY14 financial results (period ended December 31, 2014). Click on http://get.Investor-Edge.com/pdf/?c=Alcoa&d=16-Jan-2015&s=AA to read our free earnings review on Alcoa Inc. (Alcoa). The company's net sales for Q4 FY14 and FY14 improved 14% Y-o-Y and 4% Y-o-Y, respectively. Chairman and CEO, Klaus Kleinfeld said that the Company's strong Q4 FY14 results capped a pivotal year as it significantly accelerated its transformation. He also asserted that in 2014 Alcoa delivered its strongest operating results since 2008, and the company enters 2015 on solid footing, poised to continue transforming and growing. Our free coverage report can be accessed at:

http://get.Investor-Edge.com/pdf/?c=Alcoa&d=16-Jan-2015&s=AA

Earnings Overview 

During Q4 FY14, Alcoa's revenue increased to $6.38 billion from $5.59 billion in Q4 FY13, driven by higher sales in value-add businesses, comprising the mid and downstream, favorable metal prices and energy sales. The company's Q4 FY14 revenue exceeded Bloomberg analysts' estimates of $6.05 billion. In Q4 FY14, the company generated $989 million of free cash flow, the highest since Q4 FY10 and also record cash from operations of $1,458 million. The free research on AA can be downloaded as in PDF format at:

http://get.Investor-Edge.com/pdf/?c=Alcoa&d=16-Jan-2015&s=AA

For Q4 FY14, net income attributable to Alcoa stood at $159 million, or $0.11 per diluted share, compared to net loss attributable to Alcoa of $2,339 million, or $2.19 loss per diluted share, in Q4 FY13. Alcoa's reported quarter net income attributable to the company underperformed Bloomberg analysts' forecast of $319 million, or $0.25 per diluted share. Excluding the impact of special items, the company's net income attributable to Alcoa during Q4 FY14 rose significantly to $432 million, or $0.33 per diluted share, from $40 million, or $0.04 per diluted share, in Q4 FY13.

In FY14, Alcoa's revenue improved to $23.91 billion from $23.03 billion in FY13. The company's FY14 revenue exceeded Bloomberg analysts' estimates of $23.57 billion. In FY14, Alcoa delivered positive free cash flow of $455 million and cash from operation of $1,674 million. Sign up and read the free analyst's notes on AA at:

http://get.Investor-Edge.com/pdf/?c=Alcoa&d=16-Jan-2015&s=AA

During FY14, net income attributable to Alcoa stood at $268 million, or $0.21 per diluted share, compared to net loss attributable to Alcoa of $2,285 million, or $2.14 loss per diluted share, in FY13. The company's reported net income attributable to Alcoa fell short of Bloomberg analysts' forecast of $499 million, or $0.34 per diluted share. Excluding the impact of special items, the company's net income attributable to Alcoa in FY14 rose slightly over threefold to $1,116 million ($0.92 per diluted share) from $357 million ($0.33 per diluted share) in FY13.

In its guidance for FY15, Alcoa expects global aerospace sales growth of 9% to 10% driven by robust demand for large commercial aircraft, regional jets and jet engines. For automotive, Alcoa projects the steady growth to continue in FY15, and it forecasts global automotive production growth in the range of 2% to 4%. It also projects commercial transportation production growth range to be negative 1% to positive 3%. The company anticipates North America trucking business production growth of 3% to 7% in FY15. Alcoa continues to expect global packaging sales growth of 2% to 3% and global building and construction sales growth of 5% to 7% in FY15. Further, for the industrial gas turbine market, the company predicts a 1% to 3% growth rate in FY15. Alcoa sees global aluminum demand growth of 7% in FY15. Visit Investor-Edge and access the latest research on AA at:

http://get.Investor-Edge.com/pdf/?c=Alcoa&d=16-Jan-2015&s=AA

Stock Performance  

A day after the earnings release, on January 13, 2015, Alcoa's stock lost 2.29% to end the session at $15.80. However, on the last close, January 13, 2015, the stock edged 0.13% higher to close the day at $14.97, after vacillating between $14.90 and $15.23. A total of 26.45 million shares were traded which was significantly above its three months average volume of 18.32 million shares. Over the last one month and over the previous three months, the company's shares have advanced 0.27% and 3.24%, respectively. Further, the stock has surged 41.36% in the past one year. Alcoa's shares are trading below their 50-day and 200-day moving averages of $16.23 and $15.38, respectively. Further, the stock traded at a PE ratio of 17.35 and has a Relative Strength Index (RSI) of 39.24.

Sneak Peek to Corporate Insider Trading  

In the last one month, Alcoa has reported eight corporate trading transactions by eight insiders. On December 31, 2014, Henry B. Schacht, Senior Advisor to the Board at Alcoa, sold 964 shares at a price of $15.90 for a total value of $15,328. Moreover, on January 02, 2015, seven insiders purchased a total of 15,968 shares at an average price $15.83 per share, for a total value of $252,694. Among the aforesaid seven insiders, Arthur D. Collins Jr. and Michael G. Morris, both Directors at Alcoa bought 3,807 shares, each at a price of $15.83 per share. Complimentary in-depth research on AA is available at:

http://get.Investor-Edge.com/pdf/?c=Alcoa&d=16-Jan-2015&s=AA

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