Financialpost.com
Alcoa expected to kick Q1 earnings season off with a whimper
Edited by : AL CIRCLE
1 min read
Considering Alcoa Inc. is one of the first companies in Canada to report its earnings in any given quarter, there’s a certain elegant symmetry to making the aluminum producer subject of the first preview of the coming first quarter reports.
Brian MacArthur, analyst with UBS Securities, unfortunately does not expect a great quarter out of Alcoa, which reports April 10, due to issues at both ends of its production cycle.
“Upstream, we expect higher production in both alumina and primary aluminum from continuing productivity improvements, but note that results will be negatively impacted by raw material inflation, scheduled maintenance and falling regional premiums,” he said in a note to clients. “In downstream, we expect continued productivity to be offset by weakness in European commercial transportation and the building and construction sectors.”
Mr. MacArthur’s first quarter per-share earnings estimate of -US10¢ is below the current consensus of -US4¢. He’s also cut his 2012 EPS forecast to US51¢ from US57¢ to reflect lower realized pricing and foreign exchange movements.
He also maintains a US$11.25 price target and neutral rating for Alcoa.
Brian MacArthur, analyst with UBS Securities, unfortunately does not expect a great quarter out of Alcoa, which reports April 10, due to issues at both ends of its production cycle.
“Upstream, we expect higher production in both alumina and primary aluminum from continuing productivity improvements, but note that results will be negatively impacted by raw material inflation, scheduled maintenance and falling regional premiums,” he said in a note to clients. “In downstream, we expect continued productivity to be offset by weakness in European commercial transportation and the building and construction sectors.”
Mr. MacArthur’s first quarter per-share earnings estimate of -US10¢ is below the current consensus of -US4¢. He’s also cut his 2012 EPS forecast to US51¢ from US57¢ to reflect lower realized pricing and foreign exchange movements.
He also maintains a US$11.25 price target and neutral rating for Alcoa.
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