Alcoa Rises After Crushing Earnings, But Market Cycles Point In The Other Direction

Alcoa Corp AA traded over 8 percent higher Thursday morning before pulling back in the afternoon.

The aluminium company reported earnings per share of $0.63 and total revenue of $3.39 billion, compared to analyst estimates of $0.36 and $3.31 billion. Aloca also raised its revenue guidance from $3.1-3.2 billion from $3.0-3.2 billion.

Alcoa actually benefited from the trade war, as CFO William Oplinger explained, “Our smelters benefited from tariffs pushing up the Midwest regional premiums, so the impact of tariffs was a net benefit to Alcoa of $27 million.”

In analyzing the market cycles for Alcoa, we can see that the stock is still in the declining phase of the current cycle and that it down its cycle low last week. As such, we believe Thursday’s move higher is premature, likely to test the recent lows near $34 by late-November.

Alcoa Corporation Stock Chart with Weekly Bars

Related Links:

Alcoa Reported Strong Beat Amid Tariff Threat, Sell-Side Weighs In

Citigroup: Alcoa Fairly Valued At Current Levels, But Constructive In The Longer Term

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Posted In: EarningsNewsTechnicalsTrading Ideascontributorcontributors
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