Alcoa Earnings Preview: Analysts Expect Rising Revenue, Falling EPS

Alcoa AA releases its next round of earnings this Monday, January 9, 2012. Here's Benzinga's advanced look at Alcoa's fourth quarter earnings report.

Earnings and Revenue:

Analysts are predicting an EPS reading of 5 cents/share and revenues of $5.79 billion. Alcoa's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 21 cents/share on revenues of $5.65 billion. We'll have to wait for Monday to see if the company reports a decline in EPS and a small boost in revenue from the year-ago quarter, as analysts are predicting.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter	Q3	Q2	Q1	Q4
EPS Estimate	$0.22	$0.34	$0.27	$0.19
EPS Actual	$0.14	$0.32	$0.28	$0.21

(Estimates Source: Zacks)

Stock Performance:

Shares of Alcoa were trading at $9.23 as of January 3, 2012. For a full 12 months, the return has risen by 11.3%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

• Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts is a Hold. This rating has strengthened slightly over the past ninety days.

Competitors:

Wondering how Alcoa compares to rivals in the same sector? Here are a few of the company's peers.

• Aluminum Corp. of China ACH: Strong Sell with a $0.16 recent quarter EPS
• Century Aluminum Company CENX: Moderate Sell with a $0.04 recent quarter EPS
• Kaiser Aluminum KALU: Moderate Buy with a $0.63 recent quarter EPS
• Alumina AWC: Hold

Alcoa is in the mining (non ferr) industry, which has experienced price/earnings growth of 0.9%.

Finally, a description of the company's main areas of operation: Alcoa is a global producer of aluminum. It is mainly engaged in the production and management of primary aluminum, fabricated aluminum, and alumina combined. It is actively involved in a range of industries, including technology, mining, smelting, and recycling.

Take Action:

Now that you have reviewed all the numbers, be ready to move if the upcoming Alcoa earnings report has any surprises. Also, come back to Benzinga after the announcement for a full recap and a guide to your next steps.

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