Advertisement
UK markets closed
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • FTSE 250

    19,884.73
    +74.07 (+0.37%)
     
  • AIM

    743.26
    +1.15 (+0.15%)
     
  • GBP/EUR

    1.1697
    +0.0004 (+0.03%)
     
  • GBP/USD

    1.2633
    +0.0011 (+0.08%)
     
  • Bitcoin GBP

    55,519.46
    -216.82 (-0.39%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • DOW

    39,807.37
    +47.29 (+0.12%)
     
  • CRUDE OIL

    83.11
    -0.06 (-0.07%)
     
  • GOLD FUTURES

    2,254.80
    +16.40 (+0.73%)
     
  • NIKKEI 225

    40,369.44
    +201.37 (+0.50%)
     
  • HANG SENG

    16,541.42
    +148.58 (+0.91%)
     
  • DAX

    18,492.49
    +15.40 (+0.08%)
     
  • CAC 40

    8,205.81
    +1.00 (+0.01%)
     

What's in the Offing for Alcoa (AA) This Earnings Season?

Alcoa Corporation AA is scheduled to release first-quarter 2023 results on Apr 19, after market close.

The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in three of the preceding four quarters.

Let’s see how things are shaping up for Alcoa this earnings season.

Alcoa Price and EPS Surprise

Alcoa Price and EPS Surprise
Alcoa Price and EPS Surprise

Alcoa price-eps-surprise | Alcoa Quote

Factors to Note

Lower prices in Alumina and Aluminum segments are likely to have weighed on AA’s top line in the first quarter. The Zacks Consensus Estimate for total revenues in the first quarter indicates a 19.2% decline from the year-ago quarter.

Weakness in Alumina shipments due to the partial curtailment of the San Ciprian refinery and lower bauxite quality at the Australian refineries is likely to have impacted AA’s first-quarter performance.

High raw material and energy costs, primarily in Europe due to war tensions, are expected to have dented Alcoa’s bottom line. The Zacks Consensus Estimate for first-quarter earnings hints at a more than 100% drop from the year-ago reported number.

The Aluminum segment is likely to have put up a weak show due to softness in shipments, thanks to expectations of lower trading volume.

What Does the Zacks Model Say?

Our proven model does not conclusively predict an earnings beat for Alcoa this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Alcoa has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at a loss of 5 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Alcoa currently carries a Zacks Rank #3.

Highlights of Q4 Earnings

Alcoa incurred an adjusted loss of 70 cents per share in the fourth quarter of 2022, narrower than the Zacks Consensus Estimate of a loss of 85 cents. In the year-ago period, the company had reported adjusted earnings of $2.50. Total revenues of $2.66 billion surpassed the Zacks Consensus Estimate by 2.67%. The top line jumped 25.6% year over year.

Stocks to Consider

Here are some companies you may want to consider from the Zacks Industrial Products sector, as our model shows that these have the right combination of elements to post an earnings beat this season:

A. O. Smith AOS has an Earnings ESP of +5.78% and a Zacks Rank #2. The company is scheduled to release first-quarter 2023 results on Apr 27.

The Zacks Consensus Estimate for A. O. Smith’s first-quarter earnings has remained steady in the past 60 days. The company pulled off a trailing four-quarter earnings surprise of 3.2%, on average.

Graco Inc. GGG has an Earnings ESP of +2.44% and a Zacks Rank #3. The company is slated to release first-quarter 2023 results on Apr 26.

The Zacks Consensus Estimate for Graco’s first-quarter earnings has remained steady in the past 60 days. The company delivered a trailing four-quarter earnings surprise of 0.2%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

ADVERTISEMENT

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Alcoa (AA) : Free Stock Analysis Report

A. O. Smith Corporation (AOS) : Free Stock Analysis Report

Graco Inc. (GGG) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research