Mad Money

Alcoa lifts Cramer from 'orb of gloom'


"I do not think anything other than earnings will determine whether this rally continues and Alcoa suggests there could be some legs to this rally." So said Jim Cramer after sifting through the latest results from Alcoa released on Wednesday after the bell.

Cramer has often said that provide valuable insights for investors, and this quarter was no exception. "You cannot afford to miss this quarter, let alone the conference call, because the company gives you so much insight into so many sectors," Cramer said.

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Looking at the numbers, Alcoa reported third-quarter earnings of 31 cents per share, up 71 percent from a year ago, on $6.24 billion in revenue, handily topping estimates for 23 cents per share on $5.85 billion in revenue, according to a consensus estimate from Thomson Reuters.

(Also) "We're seeing an increase in demand for aluminum," added CEO Klaus Kleinfeld on "Mad Money." "US aerospace is strong, automotive is growing; we're seeing strong growth in commercial trucking and building and construction is coming back."

When Cramer asked how Alcoa could generate financial strength in the face of so much economic uncertainty, Kelinfeld added, "We are in quite a number of healthy and rebounding end markets; And I don't think is quite as bad as so many people describe it."

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All told, Cramer thinks there's a lot to like in the Alcoa report. And if the price action after hours is any indication, other pros feel the same.

Shares rose nearly 2 percent in after-hours trading, having closed about 1 percent higher at $16.07 per share. As of Wednesday's close, the aluminum maker's shares had gained more than 100 percent over the past 12 months.

Despite the pop, Cramer is bullish for the long-term. "I can see Alcoa going even higher," Cramer said. "I can even see Alcoa breaking us out of this orb of gloom."

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