U.S. markets close in 4 hours 18 minutes
  • S&P 500

    3,862.60
    -37.51 (-0.96%)
     
  • Dow 30

    31,266.39
    -171.87 (-0.55%)
     
  • Nasdaq

    11,327.62
    -196.93 (-1.71%)
     
  • Russell 2000

    1,765.43
    -6.31 (-0.36%)
     
  • Crude Oil

    110.59
    +1.02 (+0.93%)
     
  • Gold

    1,821.90
    -2.90 (-0.16%)
     
  • Silver

    20.88
    -0.29 (-1.36%)
     
  • EUR/USD

    1.0532
    -0.0055 (-0.52%)
     
  • 10-Yr Bond

    3.2130
    +0.0190 (+0.59%)
     
  • GBP/USD

    1.2191
    -0.0079 (-0.64%)
     
  • USD/JPY

    136.2120
    +0.7660 (+0.57%)
     
  • BTC-USD

    20,700.89
    -78.87 (-0.38%)
     
  • CMC Crypto 200

    450.93
    +0.87 (+0.19%)
     
  • FTSE 100

    7,324.42
    +66.10 (+0.91%)
     
  • Nikkei 225

    27,049.47
    +178.20 (+0.66%)
     

Will Strength in Aluminum Benefit Alcoa (AA) in Q1 Earnings?

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Alcoa Corporation AA is set to release first-quarter 2022 results on Apr 20, after market close.

The company’s Aluminum segment is engaged in aluminum smelting and casting operations. It offers primary aluminum in the form of alloy ingot or value-add ingot to its customers across several sectors, including construction, wire, packaging, automobile and industrial.

Key Factors to Note

The Aluminum segment is anticipated to have benefited from strong production for aluminum, supported by higher price levels in the first quarter of 2022. Solid demand for aluminum products from its customers is likely to have been beneficial for the segment. Also, Alcoa’s efforts to offer new products and focus on improving operational efficiency and commercial effectiveness are anticipated to have aided the segment in the to-be-reported quarter.

An increase in demand for value-add products, a restart of the Bécancour smelter and growth investments are likely to have supported the segment’s performance. Also, the company’s cost-saving actions and supply-chain initiatives are likely to have been favorable in the quarter.

Higher raw materials and energy costs might have adversely impacted the segment’s margins. The divestment of its Warrick Rolling Mill facility is expected to have hurt the shipment volume, hurting its profitability.

For the first quarter of 2022, the Zacks Consensus Estimate Aluminum segment’s revenues is pegged at $2,847 million, suggesting growth of 38.9% from the year-ago quarter’s reported number but a 22.3% increase from the previous quarter’s figure. (Read more: Alcoa to Report Q1 Earnings: What’s in the Offing?)

Alcoa Price and EPS Surprise

Alcoa Price and EPS Surprise
Alcoa Price and EPS Surprise

Alcoa price-eps-surprise | Alcoa Quote

Zacks Rank & Other Upcoming Releases

Alcoa currently sports a Zacks Rank #1 (Strong Buy).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Some stocks in the Zacks Industrial Products sector, which are also slated to report their results soon, are ABB Ltd ABB, Roper Technologies, Inc. ROP and A. O. Smith Corporation AOS. ABB will release results on Apr 21, Roper on Apr 26 and A. O. Smith on Apr 28.

The Zacks Consensus Estimate for ABB’s earnings is pegged at 34 cents per share for the to-be-reported quarter. The Zacks Rank #3 (Hold) company’s shares have lost 15.8% in the past three months.

The Zacks Consensus Estimate for Roper’s earnings is pegged at $3.69 per share for the to-be-reported quarter. The Zacks Rank #2 (Buy) company’s shares have gained 3.5% in the past three months.

The Zacks Consensus Estimate for A. O. Smith’s earnings is pegged at 76 cents per share for the to-be-reported quarter. The Zacks Rank #3 stock’s shares have lost 21% in the past three months.

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


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

Roper Technologies, Inc. (ROP) : Free Stock Analysis Report

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

ABB Ltd (ABB) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research