Earnings Madness: Alcoa Surprises with Profit

Earnings Madness: Alcoa Surprises with Profit

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After a 69% decrease in net income year-over-year from $308M to $94M, Alcoa Inc. (AA) posted an unexpected profit for the first quarter of 2012. An increase in aluminum sales helped push the overall operating revenue, while “good cost control likely played a major role”, said Citigroup Inc.’s Brian Yu. (STAY AHEAD OF THE CURVE: Follow Kapitall on Twitter)

Alcoa announced that it would begin shutting plants in the U.S., Spain, and Italy, which would decrease the company’s aluminum capacity by 531,000 tons. The cutbacks were mainly the result of the 23% decline in aluminum prices on the London Metal Exchange over the past 12 months, according to Bloomberg.

CEO Klaus Kleinfeld said, “We are successfully executing on our aggressive strategy to move down the cost curve in our upstream business and drive to record profitability in our midstream and downstream business.” The smelting aluminum provided approximately one-third of the company’s revenue for 2011, while flat-rolled aluminum provided 53% of sales.

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For a look at next week's reporting companies, we screened for those reporting earnings next week that are more profitable than their peers. Do you think they will maintain their profitability?

 

Interactive Chart: Use the Compar-O-Matic to compare analyst ratings for the stocks mentioned below:

 

List sorted by market cap.

 

“1. General Electric Co. (GE, Earnings, Analysts, Financials): Operates as a technology, service, and finance company worldwide. Market cap at $198.25B.Earnings to be announced on 04/20. TTM gross margin at 57.42% vs. industry average at 49.55%. TTM operating margin at 20.41% vs. industry average at 16.82%. TTM pretax margin at 14.2% vs. industry average at 13.64%.

 

“2. The Coca-Cola Company (KO, Earnings, Analysts, Financials): Distributes, and markets nonalcoholic beverages worldwide. Market cap at $163.09B.Earnings to be announced on 04/17. TTM gross margin at 65.14% vs. industry average at 59.25%. TTM operating margin at 23.47% vs. industry average at 21.81%. TTM pretax margin at 24.57% vs. industry average at 20.3%.

 

“3. Intel Corporation (INTC, Earnings, Analysts, Financials): Engages in the design, manufacture, and sale of integrated circuits for computing and communications industries worldwide. Market cap at $137.46B.Earnings to be announced on 04/17. TTM gross margin at 74.11% vs. industry average at 59.54%. TTM operating margin at 33.21% vs. industry average at 23.28%. TTM pretax margin at 32.93% vs. industry average at 22.22%.

 

“4. McDonald's Corp. (MCD, Earnings, Analysts, Financials): Operates as a foodservice retailer worldwide. Market cap at $99.48B.Earnings to be announced on 04/20. TTM gross margin at 44.81% vs. industry average at 36.82%. TTM operating margin at 30.71% vs. industry average at 19.27%. TTM pretax margin at 29.67% vs. industry average at 17.42%.

 

“5. Abbott Laboratories (ABT, Earnings, Analysts, Financials): Engages in the discovery, development, manufacture, and sale of health care products worldwide. Market cap at $94.56B.Earnings to be announced on 04/18. TTM gross margin at 68.66% vs. industry average at 65.79%. TTM operating margin at 23.16% vs. industry average at 15.54%. TTM pretax margin at 13.41% vs. industry average at 7.7%.

 

“6. Union Pacific Corporation (UNP, Earnings, Analysts, Financials): Through its subsidiary, Union Pacific Railroad Company, provides rail transportation services in North America. Market cap at $50.26B.Earnings to be announced on 04/19. TTM gross margin at 37.54% vs. industry average at 35.67%. TTM operating margin at 29.27% vs. industry average at 25.63%. TTM pretax margin at 26.92% vs. industry average at 23.%.

 

“7. PNC Financial Services Group Inc. (PNC, Earnings, Analysts, Financials): Operates as a diversified financial services company. Market cap at $32.58B.Earnings to be announced on 04/18. TTM gross margin at 83.27% vs. industry average at 72.51%. TTM operating margin at 42.16% vs. industry average at 39.97%.TTM pretax margin at 25.72% vs. industry average at 22.51%.

 

“8. CSX Corp. (CSX, Earnings, Analysts, Financials): Provides rail-based transportation services. Market cap at $21.88B.Earnings to be announced on 04/17. TTM gross margin at 37.42% vs. industry average at 35.67%. TTM operating margin at 29.11% vs. industry average at 25.63%. TTM pretax margin at 24.59% vs. industry average at 23%.

 

“9. Stryker Corp. (SYK, Earnings, Analysts, Financials): Operates as a medical technology company worldwide. Market cap at $20.25B.Earnings to be announced on 04/17. TTM gross margin at 69.81% vs. industry average at 65.62%. TTM operating margin at 23.73% vs. industry average at 14.62%. TTM pretax margin at 20.3% vs. industry average at 11.57%.

 

“10. The Chubb Corporation (CB, Earnings, Analysts, Financials): Provides property and casualty insurance to businesses and individuals. Market cap at $18.61B.Earnings to be announced on 04/19. TTM gross margin at 18.35% vs. industry average at 14.17%. TTM operating margin at 16.23% vs. industry average at 11.28%. TTM pretax margin at 16.23% vs. industry average at 8.58%.

 

 

(Written by Danny Guttridge)

 

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