Alcoa’s 3Q15 Earnings Call on October 8: Key Investor Takeaways



Alcoa reports lower EPS

Alcoa (AA) reported its 3Q15 earnings on October 8, 2015, after the market closed. It reported an EPS (earnings per share) of $0.07 after adjusting for special items. In contrast, in 2Q15, Alcoa reported an adjusted EPS of $0.19. The earnings came in lower than average Wall Street expectations, pulling down Alcoa’s share price by 6.8% on October 9.

On a year-to-date basis, Alcoa has lost ~32%, as you can see in the graph above. Alcoa has a legacy of kick-starting the earnings season. Other metals and mining companies will also be releasing their earnings in the coming days. Century Aluminum’s (CENX) earnings are expected on October 29. Currently, Alcoa forms 2.6% of the Materials Select Sector SPDR ETF (XLB).

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About Alcoa

Alcoa is a global leader in lightweight metals technology, engineering, and manufacturing. It employs more than 58,000 people in more than 30 countries. Alcoa is an integrated aluminum company. This means it has operations across the value chain of the aluminum industry.

On September 28, Alcoa announced it would be splitting into two independent companies. The transaction is expected to be completed in the second half of 2016. You can read more on Alcoa’s split in our series Will Alcoa Splitting into 2 Companies Add Shareholder Value?

Series overview

In this series, we’ll explore Alcoa’s 3Q15 earnings in detail. We’ll discuss what factors could drive Alcoa’s earnings in the coming quarters. We’ll also cover the key points from the company’s 3Q15 earnings conference call.

Towards the end of this series, we’ll also do a valuation analysis for Alcoa. This should help you understand how Alcoa could play out in the coming quarters.


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