What's left unmentioned is that Alcoa also lost $142 million, or $0.15 per share, from discontinued operations. If you count that in with the headline EPS, Alcoa actually missed on earnings. But regardless of how you count the exact EPS number, the message the market sent was clear: Alcoa was down sharply from its short-lived jump, whereas the SPDR S&P Metals & Mining ETF (XME) was up 1.5%, and pharmaceutical company Merck & Co., Inc. (NYSE: MRK) was the only Dow Jones Industrial component to suffer a larger percentage decline, falling more than 3.5%.

Not everything is bad with Alcoa. Cash flow has been improving sequentially as the terrible market conditions that existed for pretty much every industrial company from the end of 2008 into the spring of 2009 have become less adverse, and the savings targeted by management seem to be ahead of schedule. In a June research note, analysts at J.P. Morgan Chase & Co. (NYSE: JPM) said they were encouraged that these savings would materialize after meeting with Alcoa CEO Klaus Kleinfeld.

They went on to say that Kleinfeld, who ran industrial conglomerate Siemens AG (NYSE: SI), will improve the company's cash flow and properly manage business lines to move into and out of Alcoa's portfolio. J.P. Morgan has an "Overweight" rating and $12 price target on Alcoa shares.

Link to the press release: Alcoa's Second Quarter 2009 Results

James Cullen also edits and writes at CollegeAnalysts.com. He has no personal position in the stocks mentioned above.