Arconic Inc

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    Basic Materials

    Alcoa’s Transformation Is Still a Work in Progress

    Alcoa has lost more than a quarter of its market capitalization this year. Aluminum and alumina prices have been weak, which impacted aluminum producers.

    By Mohit Oberoi, CFA
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    Basic Materials

    Alcoa and Arconic Sue Berkshire-Owned Railroad

    Alcoa, Arconic, and NOVA Chemicals have filed a lawsuit against several US railroad companies. One defendant is BNSF Railway, owned by Berkshire Hathaway.

    By Mohit Oberoi, CFA
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    Consumer

    Why Buffett’s Next Elephant Could Actually Be a Dragon

    In his annual shareholder letter, Buffett lamented the lack of big acquisition opportunities.

    By Mohit Oberoi, CFA
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    Fund Managers

    After Big Aviation Bet, Buffett Is Cautious on Next Acquisition

    Buffett admitted that acquisitions aren’t cheap. He lamented that the company might have to deploy its cash into publicly-traded companies (SPY).

    By Mohit Oberoi, CFA
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    Basic Materials

    Arconic Continues to Wait for Its Warren Buffett

    Yesterday, Arconic announced that the company will “no longer pursue a potential sale of the company as part of its strategy and portfolio review.”

    By Mohit Oberoi, CFA
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    Basic Materials

    How Has Warren Buffett’s Aerospace Bet Played Out?

    In 2015, Berkshire Hathaway (BRK-B) acquired Precision Castparts for $37.2 billion.

    By Mohit Oberoi, CFA
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    Basic Materials

    A Look at the Basic Materials Sector’s Dividend Yield

    Of the various industries in the basic materials sector, integrated mining noted the highest dividend yield.

    By Amanda Lawrence
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    Basic Materials

    Arconic: S&P 500’s Top Loss on April 23

    Arconic, which is the world’s sixth-largest aluminum producer, was the S&P 500’s top loss on April 23.

    By Val Kensington
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    Company & Industry Overviews

    Arconic and Gartner Declined on February 6

    Arconic (ARNC), which specializes in engineering and manufacturing lightweight metals, was among the S&P 500’s top losers on February 6.

    By Val Kensington
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    Basic Materials

    Analyzing Alcoa’s Journey in 2017

    Alcoa (AA) made a closing high of $38.54 on February 14, 2017. Alcoa made its fresh 52-week high in October as aluminum moved to higher price levels.

    By Mohit Oberoi, CFA
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    Basic Materials

    Most Analysts View Alcoa Favorably after Its 3Q17 Earnings

    Alcoa (AA) released its 3Q17 earnings on October 18 and reported revenues of $2.96 billion in the quarter. Alcoa posted revenues of $2.85 billion in 2Q17.

    By Mohit Oberoi, CFA
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    Basic Materials

    Analyzing Alcoa’s Valuation Conundrum

    According to estimates compiled by Thomson Reuters, Alcoa is expected to post an adjusted EBITDA of $2.08 billion in 2017 and $2.0 billion in 2018.

    By Mohit Oberoi, CFA
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    Basic Materials

    Can Alcoa Continue to Hit Fresh Highs in 2017?

    Alcoa closed at $44.42 on September 5. The stock has risen more than 58% in 2017. Looking at the YTD performance, 2017 started on a positive note.

    By Mohit Oberoi, CFA
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    Basic Materials

    Have Analysts Turned Bullish on Arconic after Its 2Q17 Beat?

    Arconic (ARNC) reported its 2Q17 earnings on July 25. The company reported revenues of $3.3 billion in 2Q17, a 0.8% rise compared to 1Q17.

    By Mohit Oberoi, CFA
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    Basic Materials

    What Arconic Management Has to Say about the Grenfell Tower

    Arconic (ARNC) stock saw negative price action toward the end of June on reports that it supplied parts for Grenfell Tower in London (EWU) (UKX-INDEX).

    By Mohit Oberoi, CFA
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    Basic Materials

    How Much Money Does Arconic Expect to Make in 2017?

    Arconic expects to post revenues between $12.3 billion and $12.7 billion this year.

    By Mohit Oberoi, CFA
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    Basic Materials

    Better-Than-Expected Earnings and Guidance Couldn’t Lift Arconic

    In 2Q17, Arconic generated adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $444 million, up 3% as compared to the corresponding period last year.

    By Mohit Oberoi, CFA
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    Earnings Report

    What to Expect from Alcoa this Earnings Season

    Alcoa (AA) is expected to release its 2Q17 earnings on July 19 after markets close. Here’s what you need to know.

    By Mohit Oberoi, CFA
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    Company & Industry Overviews

    Alcoa or Arconic: Which Stock Performed Better Since the Split?

    Alcoa (AA) and Arconic (ARNC) are now independent corporate entities. Furthermore, the two companies operate in different businesses.

    By Mohit Oberoi, CFA
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    Company & Industry Overviews

    Alcoa Mid-Year 2017 Outlook: Can the Stock Continue Its Good Run?

    With the first half of 2017 behind us, investors might be wondering what lies ahead for Alcoa and aluminum prices in 2H17.

    By Mohit Oberoi, CFA
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    Miscellaneous

    How Analysts Are Rating Arconic in 2Q17

    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.”

    By Mohit Oberoi, CFA
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    Earnings Report

    Arconic’s 1Q17 Earnings: What You Need to Know

    Arconic (ARNC) released its 1Q17 earnings on April 25. The company was listed as a separate entity on November 1, 2016, when Alcoa split into two new entities.

    By Mohit Oberoi, CFA
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    Earnings Report

    Arconic’s Tough Beginning: Controversies and Battles

    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.

    By Mohit Oberoi, CFA
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    Miscellaneous

    A Unified Structure for BHP: Do the Costs Outweigh the Benefits?

    Elliott Funds has proposed unifying BHP Billiton’s (BHP) (BBL) dual-listing structure into a single Australian-headquartered and Australian tax resident–listed company.

    By Anuradha Garg
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    Miscellaneous

    Alcoa: Analysts’ Ratings Before Its 1Q17 Earnings Release

    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.”

    By Mohit Oberoi, CFA
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    Company & Industry Overviews

    Does the Slide in Alcoa Stock Present a Buying Opportunity?

    Alcoa closed at $34.40 on March 31, 2017, rising 2.7% from the previous day’s close. Though Alcoa is trading at a year-to-date rise of 23.7%, it’s lost some of its gains over the last month.

    By Mohit Oberoi, CFA
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    Miscellaneous

    The Arconic Breakdown: Reading the Analysts

    Arconic has a mean one-year price target of $29.25, representing a 4.9% upside over its closing price on March 21, 2017.

    By Mohit Oberoi, CFA
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    Company & Industry Overviews

    What Comfortable Leverage Would Mean for Alcoa Investors

    Due to Alcoa’s (AA) strong cash flow generation in November and December 2016, its net debt fell below $600 million on December 31, 2016.

    By Mohit Oberoi, CFA
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    Company & Industry Overviews

    Utilities Dominated the Market for the Second Consecutive Day

    On February 23, 2017, the S&P 500 Utilities Sector surged and closed at its highest level since September 27, 2016.

    By Val Kensington
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    Company & Industry Overviews

    Could Cash Strengthen Arconic as It Battles Elliott Management?

    According to Dow Jones, Elliott Management’s regulatory filings reveal that the company finds Arconic (ARNC) “dramatically undervalued.”

    By Mohit Oberoi, CFA
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    Company & Industry Overviews

    How Analysts View Alcoa’s Earnings Estimates

    Alcoa (AA) expects to generate adjusted EBITDA between $2.1 billion–$2.3 billion in fiscal 2017.

    By Mohit Oberoi, CFA
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    Company & Industry Overviews

    Assessing the Timing of Arconic’s Sale of Its Stake in Alcoa

    After the split, Arconic (ARNC) held an ~20% stake in Alcoa (AA), which Arconic plans to monetize in 18 months. However, ARNC retained the option to hold Alcoa’s stake for up to five years.

    By Mohit Oberoi, CFA
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    Company & Industry Overviews

    Arconic Just Sold Its Majority Stake in Alcoa

    Arconic (ARNC) announced that it sold 60% of its stake in Alcoa (AA) and raised ~$890 million. In this series, we’ll explore what this stake sale means for investors.

    By Mohit Oberoi, CFA
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    Company & Industry Overviews

    How Does Alcoa’s Balance Sheet Look Heading into 2017?

    Thanks to Alcoa’s (AA) strong cash flow generation in November and December 2016, its net debt has fallen below $600 million.

    By Mohit Oberoi, CFA
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    Company & Industry Overviews

    Investor Alert: Is Alcoa Due for a Credit Rating Upgrade?

    Currently, Alcoa (AA) has a BB- credit rating from Standard & Poor’s with a stable outlook.

    By Mohit Oberoi, CFA
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    Company & Industry Overviews

    Why Analysts Don’t Seem Too Excited about Alcoa’s Outlook

    In its 2017 EBITDA guidance, Alcoa (AA) assumed aluminum prices of $1,795 per metric ton and an alumina price index of $355 per metric ton.

    By Mohit Oberoi, CFA
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    Company & Industry Overviews

    Alcoa’s 2017 Guidance: Everything You Need to Know

    Alcoa (AA) expects its alumina shipments to range from 13.8 million–13.9 million metric tons in fiscal 2017 compared to 13.2 million metric tons in fiscal 2016.

    By Mohit Oberoi, CFA
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    Company & Industry Overviews

    Must Know: Does Alcoa Look Set for a Solid 2017?

    Alcoa (AA) released its 4Q16 financial results on January 24, 2017. AA reported a net loss of $125 million in 4Q16, which translates into a loss of $0.68 per share.

    By Mohit Oberoi, CFA
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    Earnings Report

    Arconic’s 4Q16 Guidance: What Can Investors Expect?

    The TCS (Transportation and Construction Solutions) segment’s 4Q16 ATOI is expected to rise 8%–10% YoY. The guidance is based on constant currency rates.

    By Mohit Oberoi, CFA
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    Earnings Report

    What Are Analysts Projecting for Arconic’s 4Q16 Revenues?

    Analysts expect Arconic to post revenues of $3.0 billion in 4Q16. Alcoa’s downstream business posted revenues of $3.37 billion in 3Q16.

    By Mohit Oberoi, CFA
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    Earnings Report

    Can Arconic Get Wall Street’s Support with Its 4Q16 Earnings?

    Arconic will release its 4Q16 earnings on January 31. Its 4Q16 earnings could be an opportunity for Arconic to get some support from Wall Street.

    By Mohit Oberoi, CFA
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    Earnings Report

    Alcoa’s 2017 Outlook: Management’s Insights from 4Q16 Call

    Alcoa expects global aluminum markets to be in a surplus in 2017. It expects to generate an adjusted EBITDA between $2.1 billion and $2.3 billion.

    By Mohit Oberoi, CFA
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    Earnings Report

    Alcoa’s 4Q16 Revenues Rose Due to Higher Commodity Prices

    Alcoa reported revenues of $2.54 billion in 4Q16. It’s the first quarter that Alcoa reported its upstream results on a standalone basis after the split.

    By Mohit Oberoi, CFA
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    Company & Industry Overviews

    How Alcoa’s Growth Drivers Could Change in 2017

    After Alcoa’ (AA) split, Arconic’s (ARNC) investors might not be too interested in commodity prices. For Alcoa, commodity prices should become a key performance driver.

    By Mohit Oberoi, CFA
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    Company & Industry Overviews

    How 2017 Looks Different from 2016 for Alcoa

    Alcoa made a 52-week low on January 20, 2016, and joined the ranks of other mining companies to hit fresh 52-week lows such as BHP Billiton, Rio Tinto, and Vale.

    By Mohit Oberoi, CFA
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    Company & Industry Overviews

    Can Alcoa’s Investors Expect Better Days Ahead?

    On November 1, 2016, Alcoa (AA) split into two entities: Alcoa and Arconic (ARNC). Let’s take a look at the timeline of Alcoa’s split.

    By Mohit Oberoi, CFA
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    Company & Industry Overviews

    Should Alcoa Bears Like Their Chances in 2017?

    Higher Chinese aluminum production could spoil the party that companies such as Alcoa and Century Aluminum (CENX) are currently enjoying.

    By Mohit Oberoi, CFA
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    Company & Industry Overviews

    How Do Markets See Alcoa after the Split and US Election?

    Alcoa’s split turned out to be somewhat of a disappointment. While Alcoa has seen some upward price action, Arconic has been on a losing spree.

    By Mohit Oberoi, CFA
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    Company & Industry Overviews

    Alcoa’s Leverage Metrics Look Comfortable after the Split

    One of the biggest investor concerns about Alcoa’s (AA) split related to the splitting of liabilities—namely, debt and pension liabilities.

    By Mohit Oberoi, CFA
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    Company & Industry Overviews

    What Could a Stronger US Dollar Mean for Alcoa?

    A stronger US dollar could be positive for Alcoa’s earnings. However, investors still need to watch how the stronger US dollar impacts aluminum prices.

    By Mohit Oberoi, CFA
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    Company & Industry Overviews

    How Did Alcoa’s Headlines Change after the Split?

    Alcoa’s growth drivers changed after the split. Improved commodity market sentiments are also helping Alcoa and other primary producers.

    By Mohit Oberoi, CFA
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    Company & Industry Overviews

    Alcoa Investors: Has the Commodity Cycle Turned Around?

    On November 1, Alcoa split into two new entities—Alcoa and Arconic. The split completed the process that the company initiated in September 2015.

    By Mohit Oberoi, CFA
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    Company & Industry Overviews

    What Could Drive Alcoa Stock after the Split and the Election?

    As the shock over Donald Trump winning the US presidential election slowly subsides, the market’s attention has shifted to some other upcoming events.

    By Mohit Oberoi, CFA
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    Earnings Report

    Aluminum Industry Outlook: What Do Top Executives Have to Say?

    Aluminum industry outlook For commodity companies like Rio Tinto (RIO), industry outlook is as important—if not more important—than the company’s position in the industry. Let’s see what senior aluminum executives have had to say about the aluminum industry’s outlook during their companies’ 3Q16 earnings calls. Century Aluminum Century Aluminum (CENX) expects two million metric tons […]

    By Mohit Oberoi, CFA
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    Earnings Report

    A Closer Look at Aluminum Producers’ 3Q16 Cash Flows

    Aluminum producers’ 3Q16 cash flows Previously, we looked at aluminum producers’ 3Q16 earnings. However, looking given the current challenging situation, the market (DIA) appears to be more interested in cash flows. Generating negative free cash flow can lead to cash burn. When this happens, companies have to borrow to fund their deficits, and so negative free […]

    By Mohit Oberoi, CFA
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    Earnings Report

    How Did Alcoa and Other Aluminum Producers Fare in 3Q16?

    In terms of earnings, 3Q16 was a dismal quarter for US-based aluminum producers. Alcoa’s 3Q16 EPS missed consensus estimates by roughly $0.01.

    By Mohit Oberoi, CFA
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    Company & Industry Overviews

    Why Rising Alumina Prices Make Things Easier for Alcoa

    Companies such as Rio Tinto (RIO), Norsk Hydro (NHYDY), and Alcoa (AA) have alumina refining and aluminum smelting operations.

    By Mohit Oberoi, CFA
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    Company & Industry Overviews

    Why Arconic Investors Can Find Solace in Alcoa’s Gains

    While Alcoa (AA) has seen upward price action following its split, Arconic (ARNC) has sagged. However, Arconic’s investors can still find some solace in Alcoa’s gains.

    By Mohit Oberoi, CFA
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    Company & Industry Overviews

    Trump, China, and Commodity Prices: It’s All Happening for Alcoa

    On November 1, 2016, Alcoa split into two new entities: Alcoa and Arconic. The split completed a process that was initiated by the company in September 2015.

    By Mohit Oberoi, CFA
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    Macroeconomic Analysis

    Can Higher Chinese Aluminum Exports Spoil Alcoa’s Party?

    China exported 350,000 metric tons of unwrought aluminum in October. Chinese aluminum exports fell ~1.8% YoY in the first ten months of 2016.

    By Mohit Oberoi, CFA
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    Miscellaneous

    Do Arconic’s Short-Term Challenges Outweigh Long-Term Drivers?

    The expected synergy from Alcoa’s acquisition of Firth Rixson could be a key driver of Arconic’s (ARNC) medium-term performance.

    By Mohit Oberoi, CFA
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    Miscellaneous

    Are Short-Term Challenges Playing on Arconic Investors’ Minds?

    The Engineered Products and Solutions business of consolidated Alcoa would be the key driver of Arconic’s earnings, given its share in the company’s earnings.

    By Mohit Oberoi, CFA
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    Miscellaneous

    How Market Dynamics Impacted Alcoa and Arconic

    When Alcoa’s split was announced in September 2015, aluminum prices were trading near their six-year lows.

    By Mohit Oberoi, CFA
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    Miscellaneous

    Alcoa’s Split: Is the ‘Crown Jewel’ Doing as Expected?

    When the split was announced last year, Arconic was supposed to be the crown jewel that would help drive value for shareholders once listed as a separate entity.

    By Mohit Oberoi, CFA
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    Miscellaneous

    Has Alcoa’s Split Lived Up to the Hype?

    On November 1, 2016, Alcoa split into two new entities—Alcoa (AA) and Arconic (ARNC). The split completed the process that was initiated in September 2015.

    By Mohit Oberoi, CFA
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