Kick Off To Earnings - Positive?

Alcoa kicked off our new quarter of earnings season yesterday after the close with their interesting numbers. Their sales came in, just over $4 billion, compared to their $7.5 billion in sales the same period last year. Most would think such a difference would cause for some heartache and a negative response, however, not when you're playing the market expectations game. Analysts expected Alcoa to come in with $3.8 billion in sales, which is almost half of last year's number. The actual number, being slightly higher, caused for a 6% push in the stock during after hours yesterday.

After the push was over, Alcoa actually finished in the red today after people began to consider just how bad those actual numbers are. There is always a big push to beat out market expectations, however, considering the recent extreme low balling by many analysts, you really need to look closer at the numbers. When earnings numbers that are cut in half from the previous years number are considered an indication to buy, that is when I short it. Next week we will dive into several earnings announcements, which can be a great opportunity to turn some quick profits. For more earnings news you can use Morningstar Investment Research: Free Online Trial. 4,000 In-Depth Reports, Ratings. Data on 20,000+ Stocks and Funds. Happy Trading.

4 comments:

  1. Anonymous Says:

    Much of Alcoa's short term boost was due to the fact that it cut costs. Of course, when everyone finally realized they did this primarily by laying off workers, it was time to sell...

  2. Anonymous Says:

    Is this reverse stock split for FAZ any good?

  3. Finance Fanatic Says:

    see above

  4. Lashcraz1 Says:

    Time not stay same forever and i m sure that they got some weakness in their can i buy an essay online products so that is why they didn't earn more then last year.