Alcoa (AA) to Report Q2 Earnings: What's in the Offing?
Alcoa Corporation AA is scheduled to release second-quarter 2023 results on Jul 19, after market close.
The company has a dull earnings surprise history, having outperformed the Zacks Consensus Estimate in only two of the preceding four quarters, while missing in the other two. The average miss was 201.6%.
Let’s see how things have shaped up for Alcoa this earnings season.
Alcoa Price and EPS Surprise
Alcoa price-eps-surprise | Alcoa Quote
Factors to Note
Alcoa’s second-quarter performance is likely to have been hurt by lower shipments of alumina and aluminum. Reduced refinery production is expected to have weighed on alumina shipments.
An anticipated weakness in shipments due to lower trading activities and weak volumes from the Canadian smelters is likely to have hurt Aluminum segment’s third-party sales. Higher prices of aluminum and lower raw material and production costs might have partly offset the adversity.
While alumina shipments are likely to reflect softness, higher average realized prices and strong volumes are expected to have driven the segment’s third-party sales. Lower raw material and energy costs are also expected to have aided the unit’s performance in the to-be-reported quarter.
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.
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 50 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 Q1 Earnings
Alcoa incurred an adjusted loss of 23 cents per share in the first quarter of 2023, wider than the Zacks Consensus Estimate of a loss of 5 cents. In the year-ago period, the company had reported adjusted earnings of $3.06. Total revenues of $2.67 billion surpassed the Zacks Consensus Estimate by 0.31%. The top line declined 18.8% 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:
Stanley Black & Decker SWK has an Earnings ESP of +12.23% and a Zacks Rank #3. The company is scheduled to release second-quarter results on Aug 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stanley Black pulled off a trailing four-quarter earnings surprise of 25.3%, on average. The stock has rallied 22.6% in the past three months.
Tenaris TS has an Earnings ESP of +6.27% and a Zacks Rank #3. The company is slated to release second-quarter results on Aug 2.
Tenaris delivered a trailing four-quarter earnings surprise of 9.2%, on average. The stock has gained around 4% in the past three months.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Alcoa (AA) : Free Stock Analysis Report
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