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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).

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

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 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.

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

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

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.

During its 3Q16 earnings call, Alcoa reduced its EPS segment’s fiscal 2016 revenue guidance to $5.6 billion–$5.8 billion from $5.9 billion–$6.1 billion.

Arconic posted an ATOI (after-tax operating income) of $267 million in 3Q16. In comparison, its ATOI was $294 million in 2Q16 and $257 million in 3Q15.

Last year, Arconic’s business segments compensated for the lower performance of Alcoa’s upstream business. But Arconic’s performance hasn’t matched market expectations this year.

3Q16 earnings beat According to consensus estimates compiled by Bloomberg, analysts expect Alcoa (AA) to post adjusted EPS (earnings per share) of $0.11 in 3Q16. To put this in perspective, the company posted adjusted EPS of $0.15 in 2Q16 and $0.07 in 3Q15. Analysts expect Alcoa’s 3Q16 EPS to fall year-over-year and quarter-over-quarter. Earnings beat Notably, […]

Pricing pressure Previously, we looked at the different factors that could impact Alcoa’s (AA) 3Q16 upstream revenues. In this article, we’ll analyze how the company’s downstream revenues could play out in the quarter. Note that Alcoa’s downstream business consists of three segments: Engineered Products and Solutions (or EPS), Transportation and Construction Solutions (or TCS), and […]

Demand from the aerospace industry has grown at a steady rate for the last couple of years. Higher fuel prices have forced airline companies to order new energy-efficient aircraft.

Arconic’s post-split structure would include the business segments that are currently under the Global Rolled Products (or GRP), Transportation and Construction Solutions (or TCS), and Engineered Products and Solutions (or EPS) businesses.

It’s been almost a year since Alcoa (AA) announced its split. In this series, we’ll explore the factors that are influencing Alcoa this year, including the various opportunities and challenges that the split could impose on the company.

In its Primary Metals segment, Alcoa expects the ATOI to increase by $10 million in 2Q16.

After the split, Alcoa would be renamed “Arconic.” The upstream business would be split into a new company that would be called “Alcoa.”

Alcoa had a three-year target of $7.2 billion in revenues, but it has reduced this target to $6 billion–$6.2 billion ahead of the Arconic split.

Markets were expecting Alcoa’s downstream business to more than compensate for the weakness in its upstream business.

While capacity cuts by US smelters might not have an impact on aluminum prices, cuts could support aluminum premiums. Aluminum premiums are more regional.

Alcoa reported revenues of $5.2 billion. While Alcoa’s earnings topped Wall Street expectations, its 4Q15 revenues came in lower than consensus estimates.

On November 24, Alcoa announced the executive management structure to be introduced following its split.

Elliott Management is not the only company finding value in the beleaguered commodity space. In August, Carl Icahn disclosed his 8.5% stake in Freeport-McMoRan.