Insights into Alcoa's Upcoming Earnings

Alcoa (NYSE:AA) is gearing up to announce its quarterly earnings on Wednesday, 2024-10-16. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Alcoa will report an earnings per share (EPS) of $0.37.

Anticipation surrounds Alcoa's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Overview of Past Earnings

During the last quarter, the company reported an EPS beat by $0.08, leading to a 3.15% drop in the share price on the subsequent day.

Analyst Opinions on Alcoa

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Alcoa.

A total of 10 analyst ratings have been received for Alcoa, with the consensus rating being Neutral. The average one-year price target stands at $41.2, suggesting a potential 1.44% downside.

Comparing Ratings with Competitors

The following analysis focuses on the analyst ratings and average 1-year price targets of Anglogold Ashanti, Royal Gold and United States Steel, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• Anglogold Ashanti is maintaining an Outperform status according to analysts, with an average 1-year price target of $32.0, indicating a potential 23.44% downside.
• The consensus among analysts is an Neutral trajectory for Royal Gold, with an average 1-year price target of $160.33, indicating a potential 283.56% upside.
• For United States Steel, analysts project an Buy trajectory, with an average 1-year price target of $42.64, indicating a potential 2.01% upside.

Analysis Summary for Peers

The peer analysis summary presents essential metrics for Anglogold Ashanti, Royal Gold and United States Steel, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Company	Consensus	Revenue Growth	Gross Profit	Return on Equity
Alcoa	Neutral	8.27%	$373M	0.51%
Anglogold Ashanti	Outperform	19.26%	$467M	6.40%
Royal Gold	Neutral	20.86%	$112.59M	2.76%
United States Steel	Buy	-17.77%	$489M	1.62%

Key Takeaway:

Alcoa ranks in the middle for consensus rating among its peers. It is at the bottom for revenue growth and gross profit, but at the top for return on equity.

All You Need to Know About Alcoa

Alcoa Corp is a vertically integrated aluminum company whose operations include bauxite mining, alumina refining, and the manufacture of primary aluminum. It is a bauxite miner and alumina refiner by production volume, and its profits are closely tied to prevailing commodity prices along the aluminum supply chain. The company segments include Bauxite; Alumina and Aluminum. It generates maximum revenue from the Aluminum segment. Geographically, it derives a majority of its revenue from the United States.

Key Indicators: Alcoa's Financial Health

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Alcoa displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 8.27%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Materials sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 0.69%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 0.51%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Alcoa's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.14%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Alcoa's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.65, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

To track all earnings releases for Alcoa visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.