Boston, MA 10/07/2013 (wallstreetpr) – The aluminium market is not in good health, and primary producers like Alcoa Inc (NYSE:AA) are obviously hurt with weak prices. As the miner report its 3Q13 financials tomorrow Oct. 8, there is growing investor interest on what to expect from the company. At least those investors who are already holding the stock hope that Alcoa will dodge the weak aluminium prices.
For the release of the 3Q financials, Alcoa will hold a conference call to discuss the results and the business developments at 5.00 p.m.
The company is billed as the largest global miner of bauxite. It produces fabricated aluminium and a lot of other products in this metal line. Alcoa has business presence in at least 30 countries and employees excess of 61K people.
In the planned quarterly results, Alcoa is predicted to post $060 earnings per share. This will be at least 100% upside from the corresponding quarter last year which was $0.30 per share earning.
In the past 30 days or so, there have been mixed sentiments over Alcoa’s earning target; two equities analysts have reduced their earning target on the price while three analysts have increased the earning target.
For the past at least four quarters, Alcoa has baffled analyst in earnings target by margins of between 16.5% and 37.5%. However, for the duration of the last four quarters, Alcoa has witnessed low-single-digit growth in revenue.
The 3Q sales are expected to reveal a drop of 2.1% from $5.83 billion in the corresponding quarter in the prior year to $5.71 billion.
In 1Q13, Alcoa had $1.2 billion cash on hand and was able to reduce its debt by over $560 million. In the quarter that followed (2Q13), the miners realized an increase in sales from 5.85 billion in a previous similar quarter to now $5.96 billion in 2Q13.
According to equities analyst, Alcoa, just like many other miners taking a beating from the weak aluminium prices, cannot be judge entirely on the third quarter outlook; the fourth quarter should bring out a better picture of the company. The stock currently has a market cap of $8.52 billion.
