However, the results were still dramatically down from the same period last year due to revenue being weaker than had been expected.
In trading on Wall Street after hours Monday night, the stock dipped 4.5% after it had closed 37 cents up during the regular day of trading.
Alcoa reported a quarterly adjusted profit of 7 cents per share, which was more than 133% higher than expectations on Wall Street.
However, Wall Street’s expectations were not high. Profit at Alcoa was down 75% form levels one year ago. Profit including every charge dropped down to just over $16 million in comparison to $159 million for the same three months in 2015.
Weak prices for commodities such as aluminum caused a supply glut in China that has created strong headwinds for Alcoa, said an analysts on Wall Street.
Alcoa’s revenue for the quarter was $4.9 billion, which missed expectations by over 4% and was down over 15% from the same quarter in 2015.
Investors were disappointed the most with the company’s revised estimates of its revenue from the sector of the company that makes engineered products, said a New York analyst.
Investors had hoped that the unit would be a strong source of growth for the company.
Alcoa plans to split into two separate parts, with one focusing on its traditional smelting and refining while the other would concentrate on its downstream business like making parts that are used in cars to airplanes.
Klaus Kleinfeld the current CEO will stay on as leader of the new downstream business that will be known as Arconic.
Alcoa shares have lost over 25% of their overall value over the last 12 months as the business struggles with weak pricing of commodities.
Fifteen companies are planning to post quarterly results in this first unofficial week of earning season. Others reporting include JPMorgan Chase, Delta Air Lines and BlackRock.