Q1 Earnings Season to Begin April 11th as Alcoa (AA) Leads the Way
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Price: $35.94 -0.39%
Rating Summary:
15 Buy, 15 Hold, 3 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
15 Buy, 15 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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Alcoa (NYSE: AA) is expected to report its first-quarter earnings on Monday, following the close of trading on the New York Stock Exchange. Alcoa is the traditional, unofficial kick-off to the quarterly earnings season.
The aluminum-producer is expected to report EPS of $0.27 on revenue of $6.30 billion, comparing favorably with EPS of $0.10 on revs of $4.89 billion from the first quarter of last year. Last quarter Alcoa had EPS of $0.21 on revs of $5.65 billion.
Traders and investors may want to take note of continually increasing commodity prices through the quarter, a possible boon for earnings.
Data from Bloomberg shows nine analysts have a Buy on the stock, six have a Hold, and two suggest to Sell. The analyst consensus price target range is $28 at the high end and $13 at the low end, with an average of $20. Alcoa has traded in a range of $18.47 - $9.81 over the last 52-weeks.
Goldman Sachs increased its outlook for Alcoa's first-quarter in mid-March, and now sees EPS of $0.28. The firm noted the daily average of aluminum in the quarter came in at $1.12 per pound, above Goldman's $1.04 per pound estimate.
The firm said, "We believe the recent strength in aluminum prices along with the seasonal improvement in most end markets will be the key drivers of Alcoa’s earnings in 1Q. The recent acquisition of the aerospace fastener business from TransDigm should further strengthen the downstream business by increasing its leverage to the aerospace sector where we foresee significant improvement in the coming years. While we continue to be less optimistic on aluminum versus copper due to its inventory surplus and excess capacity, recent unrest in the Middle East and higher energy prices could provide a floor for aluminum prices in the near-term."
The firm has a Neutral rating and $17 price target on Alcoa.
Deutsche Bank is also looking for first-quarter EPS of $0.28 based on "higher sequential volumes and prices for Primary metals, Alumina and Flat-rolled products, which are partially offset by higher costs." First-quarter EBITDA should come in at $974 million according to Deutsche Bank.
The firm is looking "for Primary metals sales volume of 775k tons in Q111 (+4% Q/Q) at a realized aluminum price of $1.27/lb (+6% Q/Q), implying a $0.13 premium to $1.14/lb benchmark price (~15 day lag to LME quarter average), while LME aluminum traded between $1.08 - $1.20/lb in the quarter. On the flip-side, Q111 aluminum unit cash costs expected to increase to $1.02/lb (+6% Q/Q). Alumina segment sales volumes expected to reach 2.5m tons (+3% Q/Q) at an average realized price of $360/ton (+15% Q/Q), with benefit partially offset by anticipated higher unit cost of $253/ton (+7% Q/Q)."
Deutsche has a Buy rating and $22 price target.
Mark your calendars, here are some of the more notable earnings reports coming up in the next few weeks:
The aluminum-producer is expected to report EPS of $0.27 on revenue of $6.30 billion, comparing favorably with EPS of $0.10 on revs of $4.89 billion from the first quarter of last year. Last quarter Alcoa had EPS of $0.21 on revs of $5.65 billion.
Traders and investors may want to take note of continually increasing commodity prices through the quarter, a possible boon for earnings.
Data from Bloomberg shows nine analysts have a Buy on the stock, six have a Hold, and two suggest to Sell. The analyst consensus price target range is $28 at the high end and $13 at the low end, with an average of $20. Alcoa has traded in a range of $18.47 - $9.81 over the last 52-weeks.
Goldman Sachs increased its outlook for Alcoa's first-quarter in mid-March, and now sees EPS of $0.28. The firm noted the daily average of aluminum in the quarter came in at $1.12 per pound, above Goldman's $1.04 per pound estimate.
The firm said, "We believe the recent strength in aluminum prices along with the seasonal improvement in most end markets will be the key drivers of Alcoa’s earnings in 1Q. The recent acquisition of the aerospace fastener business from TransDigm should further strengthen the downstream business by increasing its leverage to the aerospace sector where we foresee significant improvement in the coming years. While we continue to be less optimistic on aluminum versus copper due to its inventory surplus and excess capacity, recent unrest in the Middle East and higher energy prices could provide a floor for aluminum prices in the near-term."
The firm has a Neutral rating and $17 price target on Alcoa.
Deutsche Bank is also looking for first-quarter EPS of $0.28 based on "higher sequential volumes and prices for Primary metals, Alumina and Flat-rolled products, which are partially offset by higher costs." First-quarter EBITDA should come in at $974 million according to Deutsche Bank.
The firm is looking "for Primary metals sales volume of 775k tons in Q111 (+4% Q/Q) at a realized aluminum price of $1.27/lb (+6% Q/Q), implying a $0.13 premium to $1.14/lb benchmark price (~15 day lag to LME quarter average), while LME aluminum traded between $1.08 - $1.20/lb in the quarter. On the flip-side, Q111 aluminum unit cash costs expected to increase to $1.02/lb (+6% Q/Q). Alumina segment sales volumes expected to reach 2.5m tons (+3% Q/Q) at an average realized price of $360/ton (+15% Q/Q), with benefit partially offset by anticipated higher unit cost of $253/ton (+7% Q/Q)."
Deutsche has a Buy rating and $22 price target.
Mark your calendars, here are some of the more notable earnings reports coming up in the next few weeks:
- J.P. Morgan (NYSE: JPM) April 13th
- Google, Inc. (Nasdaq: GOOG) April 14th
- Bank of America (NYSE: BAC) April 15th
- Citigroup (NYSE: C), Haliburton (NYSE: HAL) April 18th
- Goldman Sachs (NYSE: GS), Johnson & Johnson (NYSE: JNJ), Intel (Nasdaq: INTC), Juniper (Nasdaq: JNPR), Yahoo! (Nasdaq: YHOO), US Bancorp (NYSE: USB) April 19th
- AT&T (NYSE: T), Nasdaq OMX (Nasdaq: NDAQ), Apple, Inc. (Nasdaq: AAPL), Well Fargo (NYSE: WFC), Yum! Brands (NYSE: YUM) April 20th
- FOrd (NYSE: F), Nokia (NYSE: NOK), Verizon (NYSE: VZ), Advanced Micro Devices (NYSE: AMD), McDonald's (NYSE: MCD), General Electric (NYSE: GE) April 21st
- Netflix (Nasdaq: NFLX) April 25th
- 3M (NYSE: MMM), Capella Education (Nasdaq: CPLA), Hershey (NYSE: HSY), United Parcel Service (NYSE: UPS), STMicroelectronics (NYSE: STM), Broadcom (Nasdaq: BRCM) April 26th
- Boeing (NYSE: BA), BP Plc (NYSE: BP), ConocoPhillips (NYSE: COP), eBay (Nasdaq: EBAY), Starbucks (Nasdaq: SBUX) April 27th
- AOL LLC (NYSE: AOL), Bristol-Myers (NYSEL BMY), Exxon Mobil (NYSE: XOM), IMAX Corp. (Nasdaq: IMAX), PepesiCo (NYSE: PEP), Microsoft (Nasdaq: MSFT), Monster Worldwide (NYSE: MWW) April 28th
- Caterpillar (NYSE: CAT) April 29th
- MasterCard (NYSE: MA), YRC Worldwide (Nasdaq: YRCW), Comcast (Nasdaq: CMCSA) May 3rd
- Sirius XM (Nasdaq: SIRI), Time Warner (NYSE: TWX), News Corp. (Nasdaq: NWSA) May 4th
- DirecTV (NYSE: DTV), Frontier Communications (NYSE: FTR), MGM Resorts (NYSE: MGM), Visa (NYSE: V) May 5th
- Disney (NYSE: DIS) May 10th
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