Alcoa Earnings Around the Corner

S&P 500 (NYSE:SPY) component Alcoa (NYSE:AA) will unveil its latest earnings on today, October 9, 2012. Alcoa is a global producer of aluminum. It is mainly engaged in the production and management of primary aluminum, fabricated aluminum, and alumina combined. It is actively involved in a range of industries, including technology, mining, smelting, and recycling.

Alcoa Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of one cent per share, a decline of 92.9% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 12 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 3 cents during the last month. Analysts are projecting profit to rise by 66.7% compared to last year’s 24 cents.

Past Earnings Performance: The company fell in line with estimates last quarter after topping forecasts the quarter before. After coming in above the mean estimate by 14 cents in the first quarter, the company fell in line with expectations by reporting profit of 6 cents per share last quarter.

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A Look Back: In the second quarter, the company swung to a loss of $2 million (0 cents a share) from a profit of $322 million (28 cents) a year earlier, meeting analyst expectations. Revenue fell 9.4% to $5.96 billion from $6.58 billion.

Wall St. Revenue Expectations: Analysts are projecting a decline of 12.8% in revenue from the year-earlier quarter to $5.6 billion.

Stock Price Performance: Between July 10, 2012 and October 8, 2012, the stock price rose 36 cents (4.11%), from $8.76 to $9.12. The stock price saw one of its best stretches over the last year between August 2, 2012 and August 10, 2012, when shares rose for seven straight days, increasing 9.8% (+80 cents) over that span. It saw one of its worst periods between May 1, 2012 and May 16, 2012 when shares fell for 12 straight days, dropping 14.8% (-$1.48) over that span.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 21.4% in the third quarter of the last fiscal year, 6% in the fourth quarter of the last fiscal year and 0.8%in the first quarter before dropping in the second quarter.

Analyst Ratings: With five analysts rating the stock as a buy, three rating it as a sell and seven rating it as a hold, there are indications of a bullish outlook.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.26 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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