Alcoa Inc (NYSE:AA) is expected to release its Q2 results today
Alcoa Inc (NYSE:AA) has become the stock which has performed the worst on the Dow Jones Industrial Average. The company is expected to report its 2Q reports today after the market close.
An analyst at Deutsche Bank reiterated a “Hold” rating on the stock. Analysts at Bloomberg are expecting the earnings to remain flat with no change as compared to the prior comparable year. The stock was downgraded by Moody’s Investors and was rated as Junk in May. Of late JPMorgan Chase & Co. downgraded the stock from “overweight” to “neutral”.
The investors are looking forward for the results of this company since this company would be the first company of the Dow Jones industrial average to report its results. The results of Alcoa will be taken as the benchmark for the rest of the company’s earnings.
Analysts are expecting Net income is expected to be 6 cents per share for the quarter which excludes one-time items such as restructuring costs. Revenue is expected to be lower compared to a year ago. As per a survey conducted by FactSet revenue is expected to be $5.85 billion for the quarter.
In the prior comparable quarter the company had posted a loss of $2 million with revenue of $5.96 billion.
The company manufactures aluminum products which are used in various consumer goods. The prices of aluminum have seen a fall due to the weakness in the economy and oversupply of aluminum. The company could offset the fall in the prices of aluminum from a rise in the demand for aluminum in planes and cars. The prices of aluminum fell 10% in the quarter. The company’s response to the fall in the price was reducing its capacity.
Of late Alco has announced that it would shut down its close two lines at a smelter in Canada and would also close an idled smelter in Italy. This would reduce the company’s capacity by about 150,000 tons.