Earnings Preview: Alcoa

 |  About: Alcoa, Inc. (AA), Includes: ACH, CCK, CENX, KALU
by: StockPandit

Company Profile

Alcoa, Inc. engages in the production and management of primary aluminum, fabricated aluminum, and alumina. The company operates in four segments: Alumina, Primary Metals, Flat-Rolled Products, and Engineered Products and Solutions.

Alcoa (AA) is scheduled to report its second quarter earnings results on July 09, 2012, after market close.

Technical Overview

click to enlarge all imagesClick to enlarge

Alcoa has a market cap of $9.49 billion and it is currently trading around $8.90 with a 52 week range of $8.21 to $16.60. The stock has 2.89% returns for the year 2012. The following table provides the key financial ratios for Alcoa:

Key Ratio Value
Current Ratio 1.25
PEG 1.94
P/E 25.43
Forward P/E 9.67
Profit Margin 2.16%
Return On Assets (ROA) 1.33%
Return On Equity (ROE) 2.76%
Click to enlarge

Recent News

  • On June 29, 2012, Alcoa announced that it has reached an agreement to sell its 351-megawatt Tapoco Hydroelectric Project to Brookfield Renewable Energy Partners.
  • On June 27, 2012, Alcoa has been named one of the Top 10 International Innovations in Diversity Award winners by Profiles in Diversity Journal.
  • On June 26, 2012, Alcoa announced the first commercial success of its ColorKastâ„¢ technology in the consumer electronics market.

Analyst Guidance and Earnings History

The second quarter revenues are expected to be $5.83 billion when compared to $6.58 billion for the same quarter last year. Earnings per share for the second quarter are expected to be 6 cents a share, down from 32 cents a share in the year-ago period.

The average price target from analyst for Alcoa is $11.20 with average rating is OVERWEIGHT.

Out of the last 4 quarters, Alcoa has met or exceeded the EPS estimates 3 times. The following chart shows the Analyst estimates history and the actual EPS results:

Click to enlarge

The following chart shows the annual summary of Sales and Net income for Alcoa:

Click to enlarge


Aluminum Corp. of China Limited (ACH), Kaiser Aluminum Corp (KALU), Century Aluminum Co (CENX), and Crown Holdings, Inc (CCK) are considered as major competitors for Alcoa and the table below provides the key metrics for these companies:

Click to enlarge

Sources: Some of the data is taken from Google Finance, Nasdaq, Yahoo Finance, Finviz and investor sites.

Additional Disclosure: I change my positions very frequently and may initiate either long or short positions in the above mentioned stocks at any time.

Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in AA over the next 72 hours.