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.
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.
Why Buffett’s Next Elephant Could Actually Be a Dragon
In his annual shareholder letter, Buffett lamented the lack of big acquisition opportunities.
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).
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.”
How Has Warren Buffett’s Aerospace Bet Played Out?
In 2015, Berkshire Hathaway (BRK-B) acquired Precision Castparts for $37.2 billion.
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.
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.
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.
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.
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.
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.
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.
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.
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).
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.
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.
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.
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.
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.
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.”
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.
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.
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.
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.”
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.
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.
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.
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.
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.”
How Analysts View Alcoa’s Earnings Estimates
Alcoa (AA) expects to generate adjusted EBITDA between $2.1 billion–$2.3 billion in fiscal 2017.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 […]
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 […]
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.