Earnings Preview: Alcoa

Alcoa (AA) is expected to report Q1 earnings Monday with a conference call scheduled for 5:00 pm EST.

Guidance

The consensus estimate is 48c for EPS and $7.18B for revenue, according to First Call.This quarter's earnings season kicks off with Dow component Alcoa, after the market close today.

Analyst analysis

Analysts are forecasting a decline in sales and profits from a year ago. Factors for this include many of Alcoa's biggest customers being in the struggling automotive and construction industries, and the negative impact of high energy costs. Although the price of aluminum has increased 24.5% over that last three months, it is not expected to offset the broader economic weakness. Shares of Alcoa have had a nice run lately, up on hopes that the worst might be over, but the optimism might be early. Friedman Billings previewed Q1 expecting the quarter to be in-line with consensus expectations, but is concerned about the Q2 outlook being weaker than expected on weakening fundamentals, high energy costs and economic uncertainties. All eyes on the conference call will be on forward guidance.