Alcoa Earnings Preview: Analysts Expect Rising Revenue, Falling EPS
Alcoa (NYSE: 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 (NYSE: ACH): Strong Sell with a $0.16 recent quarter EPS
- Century Aluminum Company (NASDAQ: CENX): Moderate Sell with a $0.04 recent quarter EPS
- Kaiser Aluminum (NASDAQ: KALU): Moderate Buy with a $0.63 recent quarter EPS
- Alumina (NYSE: 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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