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Tale of the Tape

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Alcoa's (AA) Q3 Earnings & Revenues Miss Estimates
October 11, 2016


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Alcoa Inc. (AA - Analyst Report) is the world's leading producer and manager of primary aluminum, fabricated aluminum and alumina facilities and serves aerospace, automotive, packaging, building & construction, commercial transportation and industrial markets. The company is gaining from its aggressive cost-cutting and productivity actions and favorable demand trends across aerospace and automotive markets.

Alcoa is on track to complete the separation of its smelting and refining business from those that cater to aerospace and automotive markets. The separation, which will result in the creation of two standalone entities – Arconic Inc. and Alcoa Corporation, will mark the completion of Alcoa’s multi-year transformation. The proposed split has been scheduled to become effective before the opening of the market on Nov 1, 2016.

Let’s have a quick look at the company’s third-quarter 2016 release.

Estimate Trend & Surprise History

Investors should note that the earnings estimate for Alcoa for the third quarter have been going up over the past month. Alcoa has beaten the Zacks Consensus Estimate in three of the trailing four quarters.

ALCOA INC Price and EPS Surprise


ALCOA INC Price and EPS Surprise | ALCOA INC Quote


Alcoa raked in adjusted earnings of 32 cents per share that missed the Zacks Consensus Estimate of 34 cents.


Alcoa logged sales of $5,213 million, down roughly 6.5% year over year. That also trailed the Zacks Consensus Estimate of $5,334 million.

Key Stats/Developments to Note

Alcoa expects a global aluminum deficit of 615,000 metric tons and a global alumina deficit of 1.6 million metric tons for 2016. The company reaffirmed its global aluminum demand growth forecast of 5% for 2016.

Zacks Rank

Alcoa currently carries a Zacks Rank #2 (Buy), but that could change following the company’s earnings report which was just released.

Market Reaction

Alcoa’s shares fell roughly 5.1% in pre-market trading. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on Alcoa’s earnings report!

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