Primary aluminum producer, Alcoa Inc.(AA) reported increased profits for Q4, matching analysts estimates on Tuesday.
The New York, NY based company reported fourth quarter earnings of $242 million, or 21 cents per share, up from last years loss of $191 million, or 18 cents per share. Excluding special items, earnings came in at $64 million, or 6 cents per share, matching analysts estimates.
Revenue declined by 1.5% to $5.89 billion this quarter, but beat analysts estimates of $5.6 billion.
Included in the company’s fourth quarter earnings is $161 million from the sale of the Tapoco Hydroelectric Project facility in Tennessee. AA was also able to enhance earnings by cutting costs by 12% during the quarter.
Looking ahead, AA expects to see aluminum consumption to increase by 7% in 2013. The company predicts slow growth for the aerospace sector this year, but an increase in the growth of the automotive sector.
Alcoa Inc. shares were up 16 cents, or 1.76% during premarket trading Wednesday. The stock has declined 0.66% in the past year.
The Bottom Line
Shares of Alcoa (AA) have a 1.32% dividend yield, based on last night’s closing stock price of $9.10. The stock has technical support in the $8 price area. If the shares can firm up, we see overhead resistance around the $10 price levels.
Alcoa Inc.(AA) is not recommended at this time, holding a Dividend.com DARS™ Rating of 2.9 out of 5 stars.