Boston, MA 10/07/2014 (wallstreetpr) – As usual, Alcoa Inc (NYSE:AA) would kick start the earnings season for the third quarter on Wednesday after the market closes. The company would also hold a conference call on October 8 at 5.00 p.m. Eastern Time to discuss its financial results for the third quarter, as well as, business developments.
Expectations
On average, 18 Wall street analysts expect the company to report earnings of twenty-two cents a share on revenues of $5.84 billion for the third quarter. In comparison, it reported earnings of 11 cents a share on revenues of $5.76 billion in the previous year third quarter.
This meant that analysts’ are expecting earnings to double from the last year’s third quarter on a slender revenue growth of 1.30%.
Analysts’ have been increasing their estimations in the last three-month period. Their earnings expectation was only 14 cents a share three months back. However, their projection increased to 17 cents a share two months and 18 cents a share one month back. In the last one-week period, their estimation increased to 21 cents a share. Currently, their projection is standing at 22 cents a share.
Aluminum Prices
The main reason behind the Street analysts’ move to lift their expectation was favorable momentum in the prices of aluminum, Zacks reported. Alcoa Inc (NYSE:AA) itself said during the second quarter financial results announcement that it was estimating 8 – 9% growth in the international aerospace fuelled by both big, as well as, regional jets demand.
Similarly, it said that it would expect automotive growth of 1 – 4% while packaging was expected to witness 2 – 3% uptick in the current year. Alcoa Inc (NYSE:AA) estimated its building and construction to record a growth of 4 – 6%. However, it saw its industrial gas turbine market witnessing a drop of 8 – 12% due to weak orders.
2Q Results
Alcoa Inc (NYSE:AA) reported net income of $138 million or 12 cents a share for the second quarter compared to a net loss of $119 million or a loss of 11 cents a share in the year-ago quarter. On an adjusted basis, it would have earned $216 million or 18 cents a share for the latest quarter. Its revenue advanced 7% to $5.8 billion from $5.45 billion but flat with the last year quarter.
