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3 Things to Watch When Alcoa Releases Earnings
3 Things to Watch When Alcoa Releases Earnings
3 Things to Watch When Alcoa Releases Earnings
3 Things to Watch When Alcoa Releases Earnings
3 Things to Watch When Alcoa Releases Earnings
3 Things to Watch When Alcoa Releases Earnings
3 Things to Watch When Alcoa Releases Earnings
3 Things to Watch When Alcoa Releases Earnings
3 Things to Watch When Alcoa Releases Earnings
3 Things to Watch When Alcoa Releases Earnings
3 Things to Watch When Alcoa Releases Earnings
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3 Things to Watch When Alcoa Releases Earnings

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Alcoa kicks off earnings season for the second quarter on Jul. 8.

Alcoa kicks off earnings season for the second quarter on Jul. 8.

Published in: Economy & Finance, Business
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  • http://seekingalpha.com/article/2299675-3-large-u-s-corporations-set-to-publish-earnings-the-week-of-july-the-7th
    And https://www.alcoa.com/global/en/news/image_library/overview.asp?cat_id=200
  • http://www.nasdaq.com/symbol/aa/earnings-forecast
  • https://www.alcoa.com/global/en/investment/pdfs/Firth_Rixson_presentation.pdf and https://www.alcoa.com/global/en/news/news_detail.asp?pageID=20140408000205en&detailType=invest&newsYear=2014
  • https://www.alcoa.com/global/en/investment/pdfs/Firth_Rixson_presentation.pdf and https://www.alcoa.com/global/en/news/news_detail.asp?pageID=20140408000205en&detailType=invest&newsYear=2014
  • https://www.alcoa.com/global/en/investment/pdfs/Firth_Rixson_presentation.pdf and https://www.alcoa.com/global/en/news/news_detail.asp?pageID=20140408000205en&detailType=invest&newsYear=2014
  • Transcript

    • 1. 3 Things to Watch When Alcoa Releases Earnings
    • 2. Alcoa (NYSE: AA) • Alcoa is expected to report earnings of $0.12 per share, up from $0.07 per share in last year’s second quarter. • Revenue, however, is expected to drop 3.3% year-over-year to $5.66 billion. Scheduled to report first quarter results July 8th after markets close. Photo credit: Alcoa
    • 3. So far, Alcoa is off to a great start in 2014. The company handedly beat earnings estimates last quarter. Photo credit: Alcoa
    • 4. Because of that Alcoa’s stock has taken off this year.
    • 5. That positive momentum can be continued if the company succeeds in the following three areas…
    • 6. 1. Look to see if Alcoa can at least meets earnings estimates:  Last quarter Alcoa earned $0.09 per share, which was 80% higher than analysts were expecting.  This quarter analysts expect the company to earn about $0.12 per share, though the range is anywhere from $0.09 per share to $0.16 per share.  In order to maintain its positive momentum the company needs to at least meet the average consensus estimate.
    • 7. 2. Keep an eye to ensure that Alcoa can deliver continued growth in its value-add segments:  Recently announced the acquisition of Firth Rixson to strengthen its aerospace offering.  Alcoa has announced a number of investments in value-add businesses like automotive, packaging and aerospace, while reducing its lower margin smelting capacity.  Look for additional announcements as Alcoa’s portfolio transformation continues.
    • 8. 2. Keep an eye to ensure that Alcoa can deliver continued growth in its value-add segments:  Recently announced the acquisition of Firth Rixson to strengthen its aerospace offering.  Alcoa has announced a number of investments in value-add businesses like automotive, packaging and aerospace, while reducing its lower margin smelting capacity.  Look for additional announcements as Alcoa’s portfolio transformation continues. Source: Alcoa Investor Presentation
    • 9. 3. Watch for any other big changes on the balance sheet:  As of last quarter Alcoa had $655 million of cash on hand and its net debt-to capital ratio was 33%.  However, the acquisition of Firth Rixson includes $2.35 million in cash, which is being funded by added debt.  Company remains committed to an investment grade credit rating.  Any weakness in its value-add segment could have an impact on its credit metrics.
    • 10. Alcoa’s transition from a commodity focused company to one profiting from adding value to that commodity is going well. As long as that transition continues, the company’s stock should keep rewarding investors. Photo credit: Alcoa
    • 11. Our FREE report on top dividend stocks.

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