Alcoa Inc shares prices prediction 2011 : Aluminum prices have advanced in the past year in London as usage soared in China, the biggest consumer, and demand from the U.S automotive and aerospace industries improved. Alcoa Chief Executive Officer Klaus Kleinfeld reiterated his forecast for global demand to increase by 12 percent in 2011 and double by the end of the decade as Asian countries build more office blocks and buy more aircraft, cars and trains.
After the closing bell Monday, aluminum giant Alcoa Inc. (AA) reported a second-quarter profit of $322 million, or 28 cents a share, up from $136 million, or 13 cents a share, in the year-earlier period. The firm said the "economic recovery is uneven," but the overall outlook for Alcoa and for aluminum remains positive.
Alcoa, traditionally the first company in the Dow Jones Industrial Average to report earnings, traded at 11.255 euros in Frankfurt as of 9:20 a.m. local time. That’s equivalent to $15.58, 2.1 percent below yesterday’s closing price on the New York Stock Exchange. Alcoa’s U.S. shares advanced 45 percent in the past 12 months, the third-best performer in the Dow Jones.
Alcoa’s primary-aluminum production will increase by 30,000 metric tons in the third quarter, the company said in a presentation posted on its website. The primary-aluminum unit will also see energy costs rise by $33 million in the quarter.
The market should be pleased that Alcoa is still showing these strong year-on-year trends.
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Showing posts with label alcoa stock. Show all posts
Showing posts with label alcoa stock. Show all posts
Tuesday, July 12, 2011
Sunday, July 10, 2011
Alcoa Earnings prediction Second Quarter 2011
Alcoa Earnings prediction Second Quarter 2011 : Alcoa is scheduled to report their second quarter 2011 results after the market closes on Monday, July 11, 2011. Based on our analysis, we at EarningsPreviews.com are expecting Alcoa to report better than expected quarterly results that will exceed Wall Street's consensus expectations.
Earnings Analysis
What a difference a year makes. Last year, Alcoa was eking a slight earnings beat while reporting EPS of $.13. This year Wall Street analysts are looking for earnings per share to nearly triple. Strong global demand for aluminum is likely to push Alcoa's quarterly results above expectations this quarter and the company looks to be positioned for a strong second half of the year.
Analyst Expectations
We are forecasting revenues of $6.35 billion and EPS of $.36. This would represent revenue growth of over 22 percent from last year's $5.19 billion in the same period. The current analyst consensus estimates calls for revenues of $6.33 billion and EPS of $.34.
Stock Performance
Since the beginning of 2011 Alcoa's shares have gained 6 percent, but have underperformed the 9 percent gain in the Dow Jones industrial average.
Valuation
Alcoa stock is currently trading at 11x consensus 2012 EPS estimates. This is an attractive valuation based on the company's projected growth rate. In fact, Alcoa was recently identified as one of 6 blue chip stocks to own in the second of the year.
Recommendation: Buy with an $18 price targe
Earnings Analysis
What a difference a year makes. Last year, Alcoa was eking a slight earnings beat while reporting EPS of $.13. This year Wall Street analysts are looking for earnings per share to nearly triple. Strong global demand for aluminum is likely to push Alcoa's quarterly results above expectations this quarter and the company looks to be positioned for a strong second half of the year.
Analyst Expectations
We are forecasting revenues of $6.35 billion and EPS of $.36. This would represent revenue growth of over 22 percent from last year's $5.19 billion in the same period. The current analyst consensus estimates calls for revenues of $6.33 billion and EPS of $.34.
Stock Performance
Since the beginning of 2011 Alcoa's shares have gained 6 percent, but have underperformed the 9 percent gain in the Dow Jones industrial average.
Valuation
Alcoa stock is currently trading at 11x consensus 2012 EPS estimates. This is an attractive valuation based on the company's projected growth rate. In fact, Alcoa was recently identified as one of 6 blue chip stocks to own in the second of the year.
Recommendation: Buy with an $18 price targe
alcoa stock price predictions july 2011
alcoa stock price predictions july 2011 - alcoa share price forecast july 2011; Perhaps the greatest area of focus as the second-quarter earnings season begins is corporate profit margins. On Monday, results from Alcoa Inc., which traditionally kick off each season, should throw this into sharp relief.
The favorable news is that revenue gains for the aluminum giant— and the Standard & Poor's 500-stock index broadly—are expected to look good. Indeed, analysts polled by Thomson Reuters expect Alcoa's revenue to expand nearly 22% year on year to about $6.3 billion. As for the broader market, FactSet notes revenue is expected to rise about 10.1% from a year earlier. That would mark the first double-digit gain since early 2010.
But costs are up sharply, too. That could slow earnings growth. For instance, J.P. Morgan recently lowered its full-year earnings estimate for Alcoa to $1.35 a share from $1.55, largely on cost concerns. It also reduced its estimate of Alcoa's second-quarter earnings by six cents to 32 cents a share, although that would still be up markedly from last year's 13 cents. Any benefit from higher alumina prices and production during the quarter is likely to be "offset by higher raw material costs, particularly fuel oil, caustic soda, and coke and pitch," it said.
The pressure for companies to increase earnings in this environment may be one reason hiring remains lackluster. That is especially the case because labor is typically the single biggest cost for American companies. As Friday's jobs report showed, the unemployment rate rose to 9.2% in June from 8.8% in March, and the U.S. added only about 87,000 jobs per month, on average, during the quarter.
For that reason, the key word to listen for this earnings season is "transitory." Reassurance from companies like Alcoa that second-quarter cost pressures are abating and that demand remains firm will support the view of those expecting the economy—and hiring—to bounce back in coming months.
Still, it matters what companies actually do, not just what they say. Profit margins at S&P 500 component firms are currently forecast to hit 10% in early 2012, from an estimated 9.5% in the second quarter, according to FactSet. If companies seem to be falling short of those targets, more pain for labor—and stock—markets may lie ahead.
The favorable news is that revenue gains for the aluminum giant— and the Standard & Poor's 500-stock index broadly—are expected to look good. Indeed, analysts polled by Thomson Reuters expect Alcoa's revenue to expand nearly 22% year on year to about $6.3 billion. As for the broader market, FactSet notes revenue is expected to rise about 10.1% from a year earlier. That would mark the first double-digit gain since early 2010.
But costs are up sharply, too. That could slow earnings growth. For instance, J.P. Morgan recently lowered its full-year earnings estimate for Alcoa to $1.35 a share from $1.55, largely on cost concerns. It also reduced its estimate of Alcoa's second-quarter earnings by six cents to 32 cents a share, although that would still be up markedly from last year's 13 cents. Any benefit from higher alumina prices and production during the quarter is likely to be "offset by higher raw material costs, particularly fuel oil, caustic soda, and coke and pitch," it said.
The pressure for companies to increase earnings in this environment may be one reason hiring remains lackluster. That is especially the case because labor is typically the single biggest cost for American companies. As Friday's jobs report showed, the unemployment rate rose to 9.2% in June from 8.8% in March, and the U.S. added only about 87,000 jobs per month, on average, during the quarter.
For that reason, the key word to listen for this earnings season is "transitory." Reassurance from companies like Alcoa that second-quarter cost pressures are abating and that demand remains firm will support the view of those expecting the economy—and hiring—to bounce back in coming months.
Still, it matters what companies actually do, not just what they say. Profit margins at S&P 500 component firms are currently forecast to hit 10% in early 2012, from an estimated 9.5% in the second quarter, according to FactSet. If companies seem to be falling short of those targets, more pain for labor—and stock—markets may lie ahead.
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