Did Alcoa Really Beat EPS Consensus Estimates In Q1?
Shares of Alcoa Inc (NYSE: AA) were trading lower by more than 3 percent ahead of Tuesday's opening bell.
Alcoa reported its first-quarter results after Monday's market close. The company said that it earned $0.07 per share in the quarter on revenue of $4.95 billion. Wall Street analysts were expecting the company to earn $0.02 per share on revenue of $5.14 billion.
Alcoa also provided an update to its outlook and revised its 2016 global demand for aluminum from 6 percent to 5 percent with consumption on pace to reach 59.7 million metric tons. The company cited declining demand from China and North America.
Alcoa expanded that it now expects growth in China to be 6.5 percent in 2016, down from a prior forecast of 8 percent due to slower growth in the construction and electrical segments. In fact, the company noted that China's net supply growth is the lowest that it's been since the global financial crisis.
North American demand growth is being reduced to 4 percent and aluminum supply growth is projected at only 2 percent year-over-year.
Did Alcoa Really Beat Consensus EPS Estimates?
As some have aptly pointed out, Alcoa's earnings beat was due to one-time and non-recurring addbacks and other charges, specifically $61 million this quarter.
— Benzinga.com (@Benzinga) April 11, 2016
Image Credit: Public Domain
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.