Alcoa (AA)
is not the easiest stock to follow or own. While Alcoa enjoys a solid
position on the cost curve for both bauxite and alumina and has made
progress with its aluminum costs, there are a lot of moving parts to the
model that management has little or no control over, including the
hard-to-predict behavior of the Chinese government toward its smelters.
Longer term, I'd like to see Alcoa pursue an upstream merger to further
consolidate the industry and create more cost-cutting opportunities, but
in the meantime, the outlook for aluminum in 2018 should some upside.
Continue here:
Lackluster Earnings And Guidance Create An Opportunity In Alcoa
Showing posts with label Alumina. Show all posts
Showing posts with label Alumina. Show all posts
Sunday, January 21, 2018
Wednesday, April 13, 2011
Investopedia: Can Alcoa's Recovery Continue?
It is almost hard to believe that Alcoa (NYSE:AA) shares went for about $5 a share in early 2009, but that was the depth of pessimism about global growth. Since then, investors are a lot more positive on the fortunes and future of aluminum, but the question remains whether Alcoa can continue to reward its supporters.
A First Quarter That Didn't Quite Make It
Alcoa had a decent quarter and pricing in the aluminum market is getting better, but things were not quite as good as analysts had hoped. There was a big spread in analyst estimates (about $1.1 billion), and though Alcoa only missed the average by a relatively small amount, the company was clearly a ways off the high end of the range. Profitability was solid and on target, but that only seems to matter when it's significantly better or worse than analysts hope.
It really was not a bad quarter, though. Sales were up 5% from last year (and up 22% sequentially), and EBTIDA snapped back to the tune of 22% sequential growth and 60% annual growth.
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