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The Zacks Consensus Estimate for the company’s third-quarter earnings has been revised downward by approximately 61% in the past 60 days. However, the company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters.
Let’s see how things are shaping up for Alcoa this earnings season.
Increased shipments in the Bauxite, Alumina and Aluminum segments are likely to have aided Alcoa’s top line in the third quarter.
Improved refinery demand is expected to have driven shipments at the Bauxite segment, which should reflect in the segment’s sales. The Zacks Consensus Estimate for Bauxite segment total sales (third-party sales + intersegment sales) indicates a 2.6% rise from the year-ago reported figure.
Higher shipments are expected to have boosted sales in the Alumina segment. The Zacks Consensus Estimate for total sales (third-party sales + intersegment sales) at the Alumina segment suggests an 18% jump from the year-ago reported number.2
However, logistics challenges and labor shortages are likely to have weighed on Alcoa’s third-quarter performance. High raw material and production costs and energy costs might have dented the company’s bottom line in the to-be-reported quarter.
What Does the Zacks Model Say?
Our proven model does not conclusively predict an earnings beat for Alcoa this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Alcoa has an Earnings ESP of -29.06% as the Most Accurate Estimate is pegged at 18 cents, lower than the Zacks Consensus Estimate of 25 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Alcoa currently carries a Zacks Rank #5 (Strong Sell).
Highlights of Q2 Earnings
Alcoa’s second-quarter 2022 adjusted earnings of $2.67 per share surpassed the Zacks Consensus Estimate of $2.60 per share. The bottom line surged 79.2% year over year. Total revenues of $3.64 billion outperformed the Zacks Consensus Estimate by 4.33%. The top line jumped 28.6% year over year.
Stocks to Consider
Here are some companies you may want to consider from the Zacks Industrial Products sector, as our model shows that these have the right combination of elements to post an earnings beat this season:
Parker-Hannifin Corporation (PH - Free Report) has an Earnings ESP of +0.12% and a Zacks Rank #3. The company is slated to release first-quarter fiscal 2023 (ended Sep 30, 2022) results on Nov 3.
Parker-Hannifin’s earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 11.1%.
Emerson Electric Co. (EMR - Free Report) has an Earnings ESP of +0.63% and a Zacks Rank #3. The company is scheduled to release fourth-quarter fiscal 2022 (ended Sep 30, 2022) results on Nov 2.
Emerson’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 6%.
Image: Bigstock
Will Alcoa (AA) Disappoint in Q3 Earnings on Cost Woes?
Alcoa Corporation (AA - Free Report) is scheduled to release third-quarter 2022 earnings numbers on Oct 19, after market close.
The Zacks Consensus Estimate for the company’s third-quarter earnings has been revised downward by approximately 61% in the past 60 days. However, the company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters.
Let’s see how things are shaping up for Alcoa this earnings season.
Alcoa Price and EPS Surprise
Alcoa price-eps-surprise | Alcoa Quote
Factors to Note
Increased shipments in the Bauxite, Alumina and Aluminum segments are likely to have aided Alcoa’s top line in the third quarter.
Improved refinery demand is expected to have driven shipments at the Bauxite segment, which should reflect in the segment’s sales. The Zacks Consensus Estimate for Bauxite segment total sales (third-party sales + intersegment sales) indicates a 2.6% rise from the year-ago reported figure.
Higher shipments are expected to have boosted sales in the Alumina segment. The Zacks Consensus Estimate for total sales (third-party sales + intersegment sales) at the Alumina segment suggests an 18% jump from the year-ago reported number.2
However, logistics challenges and labor shortages are likely to have weighed on Alcoa’s third-quarter performance. High raw material and production costs and energy costs might have dented the company’s bottom line in the to-be-reported quarter.
What Does the Zacks Model Say?
Our proven model does not conclusively predict an earnings beat for Alcoa this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Alcoa has an Earnings ESP of -29.06% as the Most Accurate Estimate is pegged at 18 cents, lower than the Zacks Consensus Estimate of 25 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Alcoa currently carries a Zacks Rank #5 (Strong Sell).
Highlights of Q2 Earnings
Alcoa’s second-quarter 2022 adjusted earnings of $2.67 per share surpassed the Zacks Consensus Estimate of $2.60 per share. The bottom line surged 79.2% year over year. Total revenues of $3.64 billion outperformed the Zacks Consensus Estimate by 4.33%. The top line jumped 28.6% year over year.
Stocks to Consider
Here are some companies you may want to consider from the Zacks Industrial Products sector, as our model shows that these have the right combination of elements to post an earnings beat this season:
Parker-Hannifin Corporation (PH - Free Report) has an Earnings ESP of +0.12% and a Zacks Rank #3. The company is slated to release first-quarter fiscal 2023 (ended Sep 30, 2022) results on Nov 3.
Parker-Hannifin’s earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 11.1%.
Emerson Electric Co. (EMR - Free Report) has an Earnings ESP of +0.63% and a Zacks Rank #3. The company is scheduled to release fourth-quarter fiscal 2022 (ended Sep 30, 2022) results on Nov 2.
Emerson’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 6%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.