| Why it’s Important to Understand Alcoa’s 4Q Earnings This Quarter | |
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What You Should Expect from Alcoa’s 1Q 2015 Earnings (Part 2 of 9) (Continued from Part 1) Alcoa’s 4Q earnings
In this series, we’re analyzing the expectations for Alcoa’s (AA) 1Q 2015 earnings. But, before we preview the company’s 1Q earnings, it’s worthwhile to discuss its last-quarter earnings. In this part of our series, we’ll analyze Alcoa’s 4Q earnings briefly. Please note that, currently, Alcoa forms 2.65% of the Materials Select Sector SPDR ETF (XLB). Allegheny Technologies (ATI) forms 0.5% of XLB.
4Q revenues
Alcoa reported revenues of $6.4 billion in 4Q 2014. This was 14% higher than what the company reported in 4Q 2013. The previous chart shows the summary of Alcoa’s 4Q 2104 financial results. The company’s earnings per share (or EPS) before extraordinary items were 33 cents per share. However, the company’s EPS stood at 11 cents after taking into account extraordinary items. The results were better than the average expectation on Wall Street. Alcoa benefited from higher aluminum prices and physical premiums.
Century Aluminum (CENX) 4Q earnings disappointed markets. Its share price has fallen sharply this year. CENX currently forms 2.65% of the SPDR S&P Metals and Mining ETF (XME).
Restructuring charges
These extraordinary expenses were due to the portfolio transformation that Alcoa is undertaking. The extraordinary items totaled $273 million in 4Q. Even in 3Q 2013, the company had restructuring charges of $209 million. This was because Alcoa idled its smelting plants in Italy and Australia. Alcoa has taken certain portfolio actions in 1Q 2015 as well. These actions might result in restructuring charges in the current quarter. We’ll discuss these actions in detail in the coming parts of this series.
In the next part, we’ll discuss the 1Q 2015 outlook that Alcoa’s management has provided.
Continue to Part 3 Browse this series on Market Realist:
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Century Aluminum est une société de production minière basée aux Etats-Unis D'Amerique. Century Aluminum est cotée aux Etats-Unis D'Amerique. Sa capitalisation boursière aujourd'hui est 1,5 milliards US$ (1,4 milliards €). La valeur de son action a atteint son plus bas niveau récent le 06 mars 2009 à 1,06 US$, et son plus haut niveau récent le 15 mai 2024 à 17,57 US$. Century Aluminum possède 87 260 000 actions en circulation. |