Can Arconic Improve Profit Margins in 1Q17?
Analysts expect Arconic to post EBITDA of $430 million in 1Q17, which would imply a margin of 14.4%. It posted EBITDA of $360 million in 4Q16, at 12.2%.
Analysts appear to favor Alcoa over Arconic this year, with Arconic stock receiving a “buy” or equivalent rating from only 38% of analysts polled.
Analysts expect Arconic (ARNC) to post revenues of $3.0 billion for 1Q17 and $3.1 billion for 2Q17. The company posted revenues of $3.0 billion for 4Q16.
Arconic is scheduled to release its 1Q17 earnings on April 25. ARNC was listed as a separate entity on November 1, 2016, when Alcoa split into two entities.
In 1Q17, there were rumors that Rio Tinto (RIO) could acquire Alcoa.
According to data compiled by Thomson Reuters, analysts expect Alcoa (AA) to post revenues of $3.0 billion in 1Q17.
According to consensus estimates, Alcoa is expected to post a 48% sequential increase in its 1Q17 EBITDA.
The 1Q17 earnings season is now in full swing. Alcoa (AA) is expected to release its 1Q17 earnings on April 24.
According to consensus estimates compiled by Thomson Reuters, Norsk Hydro has a mean one-year price target of 54.14 krone.
Three out of four analysts polled by Thomson Reuters rated Century Aluminum as a “hold,” while one analyst rated the stock as a “sell.”
Of the seven analysts surveyed by Thomson Reuters, three rated Arconic stock as a “buy,” three rated it as a “hold,” and one rated it as a “sell.”
Of the 13 analysts surveyed by Thomson Reuters, ten analysts rated Alcoa stock as a “buy,” three rated it as a “hold,” and no analysts rated it as a “sell.”
Aluminum prices have shown strength in 2017 and have built on 2016 gains. So far, aluminum has risen 14.7% in 2017—compared to a 13.4% rise in 2016.
The 1Q17 earnings season has officially started. Alcoa is expected to release its 1Q17 earnings on April 24 followed by Century Aluminum on April 25.
Integrated operations make Alcoa one of the few listed pure-play aluminum producers. Most top aluminum producers are Chinese companies (ACH).
Previously, we noted that Alcoa’s (AA) valuation multiples looked conservative compared to those of mining companies such as Century Aluminum, Norsk Hydro, and Rio Tinto.
A forward EV-to-EBITDA multiple tells us how a company is valued for each dollar of its EBITDA. In this article, we’ll look at Alcoa’s (AA) valuation multiple.
According to the data released by the International Aluminum Institute, China produced ~5.5 million metric tons of aluminum in the first two months of 2017.
China’s aluminum exports rose 10% year-over-year in 2015. Facing flak from most of its trading partners, China announced that it would curtail its excess aluminum capacity at the end of 2015.
Aluminum premiums are key indicators that investors in primary producers such as Century Aluminum (CENX), Norsk Hydro (NHYDY), and Rio Tinto (RIO) should track.