Alcoa’s View on the Aluminum Industry and Its Outlook
Alcoa has maintained its forecast for a moderate surplus of 300,000–700,000 metric tons in the aluminum market (CENX) (RIO).
Alcoa reported revenues of $2.86 billion in 2Q17—compared to $2.66 billion in 1Q17 and $2.32 billion in 2Q16.
Alcoa (AA) reported its 2Q17 financial results on July 19 after the markets closed. The company reported adjusted net income of $116 million in 1Q17.
Previously in this series, we’ve looked at Alcoa’s (AA) 2Q17 earnings estimates. In this article, we’ll see how leading brokerages are rating Alcoa stock ahead of its 2Q17 earnings release.
Century Aluminum (CENX) is scheduled to release its 2Q17 earnings on August 2. The stock carries a consensus one-year price target of $15.38.
Previously in this series, we’ve seen how commodity prices could impact Alcoa’s 2Q17 revenues. Along with revenues, investors should also keep track of profitability metrics.
Alcoa (AA) is expected to release its 2Q17 earnings on July 19 after markets close. Here’s what you need to know.
Aluminum has been among the better-performing base metals this year. With gains of 13.0% in the first half of 2017, aluminum has outperformed copper and zinc.
Protecting US manufacturing from the onslaught of imports was among the key topics of President Trump’s election campaign.
As we noted previously, Alcoa is now a pure-play aluminum producer. The company is an integrated aluminum producer with bauxite mining, alumina refining, and aluminum smelting operations.
The key reason for Alcoa’s split was to unlock the individual value of the two companies. The perception was that the combined entity didn’t reflect the fair value of the two assets.
Alcoa (AA) and Arconic (ARNC) are now independent corporate entities. Furthermore, the two companies operate in different businesses.
With the first half of 2017 behind us, investors might be wondering what lies ahead for Alcoa and aluminum prices in 2H17.
Century Aluminum (CENX) stock has received a “hold” rating from three of the four analysts polled by Thomson Reuters.
Of the eight analysts covering Arconic, three have given the stock a “buy” or equivalent rating, while the remaining five have given it a “hold.”
Aluminum market sentiments have faded somewhat over the last month, putting pressure on aluminum prices.
According to consensus estimates compiled by Thomson Reuters, Alcoa (AA) is expected to post revenues of $2.87 billion in 2Q17, compared to $2.65 billion in 1Q17.
Although aluminum prices have come down from their 2017 highs, they’ve still risen 10.7% year-to-date based on their June 19, 2017, closing prices.
The decline in alumina prices is a concern for Alcoa. The profitability of its alumina operations would be hit due to lower alumina prices.
If implemented, President Trump’s policies could help US-based aluminum producers like Alcoa (AA) and Century Aluminum (CENX).