Citigroup (NYSE:C) retained its "Buy" rating on Alcoa (NYSE:AA), as analyst Brian Yu said the 13 cents earnings per share beat his estimate of 10 cents a share.
The quarter the year before had Alcoa losing $454 million, or 47 cents a share, while revenue also increased to $5.19 billion, a 22 percent gain.
Aluminum prices for delivery increased 39 percent in the second quarter, in contrast to prices last year on the London Metal Exchange (LME). Even so, aluminum prices are still weak, and upstream sales will be determined by how that plays out going forward.
Some of the cost-cutting measures implemented by Alcoa should help their downstream sales, which should continue to be stronger because of the cyclical rebound, according to Yu.
Estimates for earnings per share by Citigroup remain at 46 cents.