Shares of Alcoa Inc. (NYSE: AA) gained on Tuesday. The aluminum giant, whose results are considered as an economic bellwether, swung into profit in the fiscal fourth quarter. Earnings after excluding onetime gains were in line with analysts’ expectation. The Company also boosted its outlook on global aluminum demand for 2013. Alcoa now expects global aluminum demand will grow by 7 percent in 2013, up from its previous projection of 6.5 percent growth.
For the fiscal fourth quarter, Alcoa’s net profit stood at $242 million or 21 cents a share compared to a loss of $191 million or 18 cents a share, in the year earlier period.
After excluding sales of assets, profit on adjusted basis (non–GAAP) came at $64 million or 6 cents a share compared to a loss of $34 million or 3 cents a share, in the same period of last year. The Company said that stable demand for raw aluminum, stronger demand for its high margins aluminum products from aerospace industry and cost cutting helped in improving bottom line growth even though aluminum prices fell by 12 percent in 2012. The Company expects demand from China will pick up in 2013 as world’s growth engine show signs of recovery while demand from U.S. automobile and aerospace industry is expected to remain buoyant.
Shares of Clearwire Corporation (NASDAQ: CLWR) rallied on Tuesday. DISH Network (NASDAQ: DISH), with an aim to gain foothold in broadband market, offered to buyout Clearwire for $2.28 billion, surpassing Sprint Nextel’s (NYSE: S) $2.22 billion offer. At present, the U.S. broadband market is dominated by Verizon Wireless and AT&T. sprint Nextel, currently holds 50 percent stake in Clearwire—which is America’s third largest carrier and owns crucial mobile spectrum. Dish’s offer is likely to heat up its takeover battle with Sprint since itself is eyeing to acquire Clearwire’s remaining stake.
Shares of for profit education -service chain, Apollo Group (NASDAQ: APOL) slumped after the Company, following closing bell on Tuesday, provided its outlook on fiscal 2013 which fell short of Street’s expectation even though fiscal first quarter earnings and revenue were better-than-expected.
Shares of social networking giant Facebook Inc. (NASDAQ: FB) gained in early trade on Tuesday after the Company extended a press-event invitation at it Menlo Park Campus. Speculation is rife about company unveiling new products. Some say that FB could unveil a phone while other say it can be about search engine.
NuVasive Inc. (NASDAQ: NUVA) shares leaped on Wednesday after the medical device company while announcing its preliminary unaudited results boosted its outlook on 2013. For the fiscal 2012 ended December 31, 2012, NuVasive expects full -year revenue of about $619 million, up from its previous guidance of $601 million to $606 million. The Company anticipates 2013 revenue at $655 million.
Seagate Technology Plc (NASDAQ: STX) shares gained after hard disk drive maker boosted its outlook on fiscal second quarter earnings. The Company now expects revenue of $3.6 billion up from its previous estimate of $3.5 billion. Analysts’ consensus estimate is for revenue of $3.53 billion in the fiscal second quarter.
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