|Bid||2.48 x 5191900|
|Ask||2.51 x 3754700|
|Day's Range||2.40 - 2.51|
|52 Week Range||1.66 - 2.60|
|PE Ratio (TTM)||72.94|
|Earnings Date||Feb 22, 2018|
|Forward Dividend & Yield||0.07 (4.48%)|
|1y Target Est||2.10|
Alcoa (AA) expects global aluminum demand to exceed supply in 2018 on China’s supply-side reforms. Notably, China has been curtailing its polluting industrial capacity in a bid to control its rising smog levels during the winter months.
In this part, we’ll see what Alcoa’s (AA) management had to say about aluminum’s demand-supply equation during its 4Q17 earnings call. First, let’s see what Alcoa had to say about the 2017 market balance. According to Alcoa, global bauxite and alumina markets (AWC) were balanced in 2017.
Alcoa (AA) reported its 4Q17 earnings on January 17, 2018, after the markets closed. The company posted an adjusted EPS (earnings per share) of $1.04 in 4Q17. Alcoa’s 4Q17 earnings fell short of analysts’ top line and bottom line estimates.
Alcoa (AA) expects to generate adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) between $2.6 billion and $2.8 billion in fiscal 2018. The guidance has baked in average LME (London Metals Exchange) aluminum prices of $2,200 per metric ton and API (alumina price index) of $390 per metric ton. In arriving at this guidance, Alcoa has assumed almost flat alumina (AWC) and bauxite shipments as compared to 2017 with a slight decrease in its aluminum shipments (CENX).
China is curtailing its polluting steel and aluminum capacity in a bid to address rising pollution levels. China exported 440,000 metric tons of unwrought aluminum last month—a YoY (year-over-year) increase of 12.8%. Last year, China’s aluminum exports rose 4.5%—compared to 2016.
In this article, we’ll see what the market would like to hear on Alcoa’s 4Q17 earnings call. For metal and mining companies (RIO)(AWC) like Century Aluminum (CENX) and South32 (S32), the macro environment—which includes metal and raw material prices—is equally if not more important than company-specific factors. Speaking of aluminum, we’ve seen that prices are sensitive to China’s demand-supply dynamics.
Alcoa’s (AA) 4Q17 earnings are expected on January 17. Notably, for mining companies, sales are a function of external shipments and commodity prices. Bauxite, alumina, and aluminum are the key commodities that Alcoa sells.
Stocks with market capitalization between $2B and $10B, such as Alumina Limited (ASX:AWC) with a size of A$7.14B, do not attract as much attention from the investing community as doRead More...
One of the factors that boosted industrial metal prices in 2017 was better-than-expected demand from China. Its construction sector was strong in 1H17.
After its split, Alcoa (AA) became a pure-play aluminum producer (S32) (CENX). Like other aluminum producers, Alcoa’s fortunes are tied to metal prices.
Last month, China exported 380,000 metric tons of unwrought aluminum, which is similar to the corresponding month in 2016.
Aluminum was among the best-performing base metals in 1H17. It outperformed several other industrial metals including copper.
In this article I am going to calculate the intrinsic value of Alumina Limited (ASX:AWC) using the discounted cash flows (DCF) model. If you want to learn more about thisRead More...
Alumina Limited (ASX:AWC) is currently trading at a trailing P/E of 54.5x, which is higher than the industry average of 13.9x. Although some investors may jump to the conclusion thatRead More...
Shortages of alumina, the raw material for producing aluminium, may become more severe in the coming months as an environmental crackdown in China is due to shut capacity, forcing smelters to scramble for supplies and pushing up prices. Alumina prices have already shot up 73 percent since May and could see further gains, but they are likely to ease early next year as Chinese refineries resume output again following the winter shutdowns at the same time new operations elsewhere ramp up. China has imposed its most stringent ever measures on heavy industry to cut pollution during the peak winter season, including on aluminium and alumina plants.
(Reuters) - China has ordered 28 northern Chinese cities to take stringent steps to curb industrial output this winter. This includes a requirement for refineries of alumina - the raw material to make ...
Alumina Limited (ASX:AWC) generated a below-average return on equity of 4.65% in the past 12 months, while its industry returned 10.23%. An investor may attribute an inferior ROE to aRead More...