Alcoa Inc. (AA) : Q315 Earnings Whisper

All eyes will be on Alcoa Inc. (AA) after the market closes today. The company’s third-quarter earnings will mark the unofficial launch of what is currently projected to be the weakest earnings season for S&P 500 companies since 2009. Wall Street analysts are on average expecting the New York-based aluminum maker to post $5.69 billion in sales during the quarter. This would show a 3.56% decrease from the Q215 revenue of $5.9 billion and a decrease of 8.23% from the same period in Q314. EPS in Q315 are expected to come in at $0.14, a decline rate of 54.84% from $0.31 per share a year earlier. Meanwhile, reports a whisper number of $0.13 per share.

As a quick reminder, Alcoa Inc. reported Q215 EPS of $0.19, $0.03 lower than the Street’s consensus estimate. Revs increased 1.72% year-over-year to $5.9 billion versus the $5.79 billion consensus.

AA is currently printing a higher than average trading volume with the issue trading more than 68 million shares, compared to the average volume of 33.15 million. The stock began trading this morning at $10.85 to currently trade 1.10% lower from the prior days close of $10.94. On an intraday basis it has gotten as low as $10.79 and as high as $10.94.

Alcoa Inc. shares are priced at 22.52x this year’s forecasted earnings, compared to the industry’s -11.01x earnings multiple. The company’s current year and next year EPS growth estimates stand at (18.5%) and 6.70%, compared to the industry growth rates of (30.4%) and 227.10%, respectively. AA has a t-12 price-to-sales ratio of 0.55. EPS for the same period registers at $0.48.

AA shares have advanced 12.55% in the last 4 weeks and 3.62% in the past three months. Over the past 5 trading sessions the stock has gained 13.25%. The $13.64 billion market cap company, which last week surprised the Street with a plan to break itself up by separating manufacturing operations from its metal-producing business, has a median Wall Street price target of $13 with a high target of $18.

Alcoa Inc. is down 30.80% year-over-year, compared with a 3.51% gain in the S&P 500.

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