This page has been archived and commenting is disabled.
Alcoa Misses Revenue Big: $4.89 Billion Vs $5.23 Billion Consensus; EPS Meets Expectations
7% top line miss is not easy to explain, as CNBC just demonstrated. The revenueless (and jobless) recovery is becoming even more revenueless (and jobless) and less recovery. When AA is unhalted will likely not be pretty (a statement based on logic and thus about to be thoroughly disproven).
Not even a near record low AA (stock price)-to-Aluminum ratio could save the quarter. All eyes now turn to China for the explanation.
»
- 5097 reads
- Printer-friendly version
- Send to friend
- advertisements -
Buy the dip
Buy the dip
Buy the dip
BUY BUY BUY Goddammit ...
that one actually made me laugh out loud
Whatever the stock loses tomorrow will be recovered within days.
Several Chop Shops already downgraded this thing last week to bait the bears.
Watch this stock U-Turn.....
who cares? I'm not buying or shorting this stock.
Yep, the fix was in on this one with two downgrades late last week. You can bet it'll be up tomorrow.
This recovery is starting to smell a lot like odorless cologne.
odorless my ass
Dude.... no.... really...... you, are fucking BRILLIANT!
Thanks for the laugh, JW
alcoa may have missed revenue by 7% in a (supposedly) 4% GDP quarter, but look at the bright side - aluminum inventories are at all time high, so, that should be good, right?
AA halted, i didn't even notice.
No reason why terrible earnings should keep a stock from skying on no volume in this market...in fact...I expect a moon shot once it starts trading...why not? It's not as if fundamentals matter.
PS: Ok these fucking "CATCHA" conundrums are starting to get annoying. Every time I log back in here I have to prove I'm me by calculating the speed of a 22 caliber bullet fired at 8000 feet altitude during an evening with 47% humidity and a SE wind of 3.876 miles per hour blowing slightly to the right of the target...I mean really guys...this is fucking ridiculous.
The negative number minus the negative numbers are the ones that get me every time.
A 5 dollar calculator and an education are a powerful combination when overcoming simple math.
The answer is......42
My captcha was simple, yet elegant. It asked me to predict "How many profitable day GS would have in 2010 _______" Even when I aswered wrong, the correct answer popped up. Thank you Lloyd.
Pure fucking commentary GOLD
OMFG I lurv ZeroHedge
African or European Swallow?
I usually just take a wild guess at those math questions, which probably explains why only 1% of my daily 250 posts ever appear on here.
dudes, when it doesn't like the entry you gave, you do know that simply reentering the same thing and hitting enter again will get into the queue. Even wrong, if you are determined you will get it posted...
What gets me is trying to figure the answers in relationship to the new "normal".
A negative time a negative was a positive when I was in school decades ago. But with the Fed and Treasury pushing the "new" math, does that mean I must reverse all realty to come up with the "correct" answer of the "New" Outer Limits or does Zero Hedge still operate in the old Outer Limits?
No, any number of negatives still add up to a positive according to the Fed and Treasury.
I am good at these now. Only because my daughter is going through these in school and I had to re-learn them so I can help her.
You should have seen her face the first time she asked me for help and saw me struggle.
thanks for the laugh.
I believe the same people who designed CAPTCHA are the ones who designed the bookkeeping system for Wells Fargo.
"-22 times 30=______"
"Your answer is three characters when two characters is the maximum"
Wrong on two counts.
SPIN:
yeah this makes sense after the market rallies 75% on no volume because "people just dont understand how strong the earnings recovery is" and then the first guy up to bat whiffs revenue by 7% despite having the price of the commodity he sells slingshot through the roof by currency debasement and never end stimuli programs all at the taxpayers expense globally, i suppose that really should be cause for any sort of concern
Bloomberg jumps the shark on this one, they had forecasts at 9 cents...
Alcoa Profit Tops Analysts’ Estimates as Prices Risehttp://www.bloomberg.com/apps/news?pid=20601087&sid=a69nH0DBHLfw&pos=2
Tis but a flesh wound...
Who needs revenue growth anyway? We can make it all up with cost cutting and aggressive accounting.
Actually, all you need is creative accounting.
Doesn't hurt, but if you can get most of the people to believe that red is the new black, voila!
The only earnings announcement that matters is Intel tomorrow night. All of the others are noise. Since Intel has run up in price 17% since Feb 5, be wary of the market come Wednesday if their earnings aren't stellar.
Love the oriental brides banner ad on the top of the homepage. classy. LOL
It's all part of the ZH appeal that brings us here so often ...
well, I just get econ and gold stuff. So what kind of sites have you been visiting for Google to place that ad on your screen - lol
Don't ask, don't tell.
It doesn't matter what the numbers are, stocks go higher as we obliterate the USD, then the world. AA $14.70 +13cts.
Alcoa is a paradigm of the double whammy in the economy:
-8% rise in aluminum prices this quarter (inflation)
-Announced it's demolishing 2 plants in April (and took the charge)! (deflation)
So very little to no organic growth, all inflation. But also laying off, cutting expenses and capex. Symptoms of contracting economy masked by inflation.
http://www.reuters.com/article/idUSN0514704420100405
UPDATE 2-Alcoa demolishing two plants, sees $120 mln charge
Mon Apr 5, 2010 6:30pm EDT
* Closing Badin, Eastalco smelters
STOCKS | BONDS | GLOBAL MARKETS | BASIC MATERIALS
* Sees $120 mln after-tax charge
* Sees $80 mln charge from U.S. health care overhaul (Adds analyst's comment, background, additional details)
HOUSTON, April 5 (Reuters) - Alcoa Inc (AA.N) said on Monday it plans to shut and demolish two previously idled plants, citing market fundamentals.
Alcoa will permanently shutter its Eastalco smelter in Frederick, Maryland which has a capacity of 195,000 metric-tons-per-year and its smelter in Badin, North Carolina which has a capacity of 60,000 metric-tons-per-year, it said in a regulatory filing.
Global demand for aluminum has not rebounded as quickly as that of steel and other metals since the start of recession started in December 2007.
just seen a headline... Alcoa shares resume trade... up 0.2%
so earnings and fundamentals .... do NOT matter in this fiasco of a market
If you make the stuff that kills people then you are part of the terrorist insider too important to fail. You can't hurt people without out lightweight aerospace aluminum. Alcoa will always be "connected".
i think gotta have a little context here - AA is down 15% from its jan high, and as ppl above pointed out analysts been trying like crazy to set this up to work post the results by slashing eps for the last week or so. while they were busy doing that, they sorta missed a 7% revenue whiff in some sort of global manufacturing boom, but hey, you cant expect these guys to catch everything right?
point is - lets see how many other 7% revenue misses are running around out there. and then lets see how many more show up in Q2 when the straight crack rush of stimulus spending eases. then lets see how many more show up in Q3 when all of a sudden the comps stop looking so easy because we arent comping off the single largest collapse in global trade in history (yes, thats right, worse than the great depression, courtesy of globalization). then lets see how many show up in 1H 2011 when the comps are outright impossible given the taxpayer money thrown into the system.
Don't worry kids, it's all good. Revenue? Why should the market worry about that? Us taxpayers will pump AA to $ 900 a share. Buy, Buy ,Buy. Us Taxpayers got you covered.
A few more layoffs will fix the problem. LULZ!
actually, the economy is starting to improve. No V shaped but a long V shaped one.
The derivate meltup will not happen. Banks will improve as their stock price goes up. And soon it will be summer and the sun will be all shiny again :)
I didn't junk you (I don't believe in junking posts regardless of the viewpoint) but with posts like these, no wonder you are collecting junks like candy.
Let me guess. You got hired 3 weeks ago, right?
As we approach the "event horizon" it matters little what speed you are at.
AA concensus started in the low $0.20s. Article this am on Bloom on how the core consumer products companies - wasn't the meme these guys finally have pricing power due to inputs - have decided to get aggressive to try and drive people back to the premium brands which have been put to pasture for the dreaded no frills aisle at pathmark. AA can't even beat as Al prices levitate. Perhaps CNBC will do a report on the price vs. volume trends to confirm how healthy it is for people making less money to pay more for everything.
Alcoa demolishing plants. Let me repeat that. Demolishing. Not idling. Definitively cutting production capacity cause they best believe demand is never coming back to pre-crisis levels. Wow.
That's the kind of capitulation I haven't heard since the 1970s "Rust Belt" drama unfolded. Only we're talking Alcoa in the 2010s.
That's an important data point and commentary on the current economy. Downsizing industrial capacity is ongoing from the auto and related industry, food industry, refineries, electronics manufacturers (DELL) etc..We're downsizing folks.
The reasoning seems to do with cost of energy to the plants (aluminum is separated from ore using large amounts of electricity) and possibly in preparation to move production out of country. Yes, the Aluminum Company of America is moving more production overseas. Some analysis here:
http://www.allbusiness.com/government/government-bodies-offices-us-feder...
Who needs aluminum cans for beverage delivery when the iMaxiPad has an app for that?
Isn't what they do for these earnings seasons... set the bar high just after earnings for the next lot of earnings... shares soar, then just before... they push the 'expectations' lower and then lower and then lower... so magically the new lofty share price is 'justified' by the 'expectations' being met or just about met.
Another con game
I think tomorrow the market should rally!
As for the one AA item that MSM is hanging their hats on (the $0.10 EPS), no one mentions that even that number has been revised down a few times from $0.20+ just a couple months ago.
Got to keep this big con/scam/pyramid scheme/ponzi going dontcha know....
Hans is getting closer to the cliff.
I place some charts, feel free to check it. SPX is doing nice divergences and on monthly we can see an M A Pattern... the question is not if... but when...
http://midasfinancialmarkets.blogspot.com/2010/04/padrao-m-e-divergencia...
Bankstas and Polticos will keep this market going-up no matter what AA revenue number looks like they will explain it away as a typo!
Market up, up and away. Trend is your friend till you catch him with your wife:-)