Dahlman Lowers Estimates Ahead Of Alcoa's Earnings

Dahlman Rose is lowering Alcoa

3Q10 EPS estimates, based on lower than anticipated aluminum prices during the quarter. Going forward, given recent trends in aluminum prices, Dahlman expects improved results. Dahlman is decreasing its 3Q10 EPS estimate for Alcoa to $0.05 from $0.10. The decrease in earnings estimates can be attributed to lower than forecasted aluminum prices during 3Q10, which averaged $0.93 per pound versus an estimated $0.95 per pound. Further, seasonal factors may contribute to softer results during the quarter. Aluminum fundamentals appear to have improved, but still remain a concern about a possible supply response. Dahlman remains comfortable with its full year 2010 and 2011 estimates of $0.45 and $1.10 and $2.8 and $4.0 billion, respectively. Dahlman has a Hold rating on Alcoa AA is trading almost 2% higher at $12.37