Deutsche Bank Cuts Price Target on Alcoa (AA) Ahead of Earnings, Comments on Capacity Cuts
Tweet
Share
E-mail
Get Alerts AA Hot Sheet
Price: $49.98 +0.79%
Rating Summary:
20 Buy, 13 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
20 Buy, 13 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Join SI Premium – FREE
Deutsche Bank is maintaining its Hold rating on shares of Alcoa (NYSE: AA) and is reducing its price target from $12 to $10 ahead of the company's fourth quarter earnings release.
AA will announces its Q4 results on January 9 after the market closes. The company also has a conference call scheduled for the same day at 5:00pm EST; dial-in: (800) 299-7635, id# 36291193.
The firm is estimating EPS of $0.01 and EBITDA of $545 million as it forecasts Primary metals and alumina sales volumes will remain unchanged at 754,000 tons and 2.3 million tons. FY11 EPS is estimated to be $0.72.
AA announced plans to close or curtail around 12 percent of its global smelting capacity. An analyst at Deutsche comments, "Cuts include 7 percentage points of permanent closures of an already idled plant in Alcoa, Tennessee and 2 of the 6 idled pot lines at its Rockdale, Texas smelter, together totaling 291k tons. Pending curtailments will temporarily idle 240k tons, or a further 5pp of capacity. Alumina production will be reduced on matching basis. Restructuring charges for 4Q11 are expected at ~$160m after-tax, or ~$0.16/share."
For FY12, the firm is forecasting EPS of $0.62 with a loss of $0.08 per share for the first quarter.
For an analyst ratings summary and ratings history on Alcoa click here. For more ratings news on Alcoa click here.
Shares of Alcoa closed at $9.36 yesterday.
AA will announces its Q4 results on January 9 after the market closes. The company also has a conference call scheduled for the same day at 5:00pm EST; dial-in: (800) 299-7635, id# 36291193.
The firm is estimating EPS of $0.01 and EBITDA of $545 million as it forecasts Primary metals and alumina sales volumes will remain unchanged at 754,000 tons and 2.3 million tons. FY11 EPS is estimated to be $0.72.
AA announced plans to close or curtail around 12 percent of its global smelting capacity. An analyst at Deutsche comments, "Cuts include 7 percentage points of permanent closures of an already idled plant in Alcoa, Tennessee and 2 of the 6 idled pot lines at its Rockdale, Texas smelter, together totaling 291k tons. Pending curtailments will temporarily idle 240k tons, or a further 5pp of capacity. Alumina production will be reduced on matching basis. Restructuring charges for 4Q11 are expected at ~$160m after-tax, or ~$0.16/share."
For FY12, the firm is forecasting EPS of $0.62 with a loss of $0.08 per share for the first quarter.
For an analyst ratings summary and ratings history on Alcoa click here. For more ratings news on Alcoa click here.
Shares of Alcoa closed at $9.36 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
- Reading (RDI) Tops Q2 EPS by 4c
- Bernstein SocGen Group Reiterates Outperform Rating on JD.com, Inc (JD), 'very cheaply valued'
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Deutsche Bank, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
