The latest news Beijing time on October 7 morning news, Alcoa (AA) will be the third quarter earnings report after the US stock market closed on Wednesday (Beijing time on Thursday morning), thus kicking off the quarterly US earnings season.
The question that investors will be concerned about is what the benefits of automotive and aerospace aluminum alloy growth will bring to Alcoa. Just last week, Ford Motor (F) just announced a series of new product development plans, including aluminum body pickups. In addition, investors will also be concerned about whether Alcoa can continue the trend of rising profit margins in the second quarter. The company has taken measures to divest low-margin business units and shift its focus from “upstream” commodity business to “downstream”. Product and manufacturing operations.
In the second quarter, Alcoa's engineering products and services division saw an increase in profit margins, and the company began to enter the aviation aluminum alloy after acquiring the jet aircraft component manufacturer Firth Rixson for $2.85 billion in the first quarter. The field is a factor that analysts are optimistic about. The company also signed a $1 billion multi-year contract in early September to supply Boeing with aluminum and aluminum products.
The following are the main points of attention of Alcoa's earnings report:
-- Earnings: According to a financial information provider FactSet survey, analysts on average expected Alcoa's third-quarter earnings per share of 22 cents, equivalent to twice the earnings per share of 11 cents in the same period last year.
-- Revenue: Analysts on average expected Alcoa's third-quarter revenue to be $5.828 billion, up from $5.643 billion in the same period last year.
-- Stock price: Alcoa's share price performance this year has been strong, up nearly 50%, far better than the S&P 500 index's 6% increase over the same period. Since being expelled from the Dow Jones Industrial Average on September 23, 2013, the company's share price has risen by more than 90%, up 5% since the end of the second quarter.
-- Others: Investment firm Sterne Agee analysts believe that the aluminum prices (13880, -120.00, -0.86%) of the London Metal Exchange have fallen due to investor concerns about the Chinese market and global economic growth, which is for Alcoa The company is a disadvantage. At the same time, however, the company's fundamentals are still performing well, supporting its target price of $18.
Keywords: Alcoa, Alcoa, Aviation Aluminum