3 Things to Watch
When Alcoa Releases
Earnings
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 ...
So far, Alcoa is off to a great start in 2014. The
company handedly beat earnings estimates last
quarter.
Photo credit: Al...
Because of that Alcoa’s stock has taken off this year.
That positive momentum
can be continued if the
company succeeds in the
following three areas…
1. Look to see if Alcoa can at least meets earnings
estimates:
 Last quarter Alcoa earned $0.09 per share, which was
80% ...
2. Keep an eye to ensure that Alcoa can deliver
continued growth in its value-add segments:
 Recently announced the acqui...
2. Keep an eye to ensure that Alcoa can deliver
continued growth in its value-add segments:
 Recently announced the acqui...
3. Watch for any other big changes on the balance
sheet:
 As of last quarter Alcoa had $655 million of cash on
hand and i...
Alcoa’s transition from a commodity focused company to one profiting
from adding value to that commodity is going well. As...
Our FREE report on
top dividend stocks.
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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.

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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
  • 3 Things to Watch When Alcoa Releases Earnings

    1. 1. 3 Things to Watch When Alcoa Releases Earnings
    2. 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. 3. So far, Alcoa is off to a great start in 2014. The company handedly beat earnings estimates last quarter. Photo credit: Alcoa
    4. 4. Because of that Alcoa’s stock has taken off this year.
    5. 5. That positive momentum can be continued if the company succeeds in the following three areas…
    6. 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. 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. 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. 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. 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. 11. Our FREE report on top dividend stocks.

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