Saxo Group Videos

Earnings Season: Is Wall Street too bullish on Alcoa?

Wall Street analysts see potential in Alcoa stock, which is down around 30% this year, but Saxo Bank’s Mads Koefoed is less convinced and here’s why.

US metals company Alcoa is due to report second quarter earnings on July 8 after market close. Alcoa is expected to present Q2 earnings per share (EPS) of USD 0.23 versus 0.18 a year ago, while revenue is seen at USD 5.8 billion compared to 5.84 billion in Q2 2014.

Koefoed’s main focus will be on how well Alcoa has integrated its latest acquisitions as it seeks to diversify its business away from traditional smelting and refining to more profitable products for the aerospace and auto industries.

Alcoa announced in March it had agreed to titanium supplier RTI for USD 1.3 billion - just a week after completing its acquisition of Tital, a German manufacturer of titanium and aluminium castings for aircraft.

Koefoed will also be keeping an eye on how Alcoa plans to address current challenges such as weak economic growth in Europe and oversupply in the market, which could put a damper on its earnings.

02:17 minutes
Tags: alcoa, alcoa earnings, alcoa revenue, aluminium, aluminium giant, aluminium industry, aluminium producer, aluminium producer alcoa, china, china economy, china growth, earning reports, earnings, earnings expectations, earnings per share, earnings q2, earnings reports, earnings results, earnings season, earningseason, earningsreports, earningsseason, energy prices, july 2015, koefoed, mads, mads koefoed, oversupply, q2, reports, rti, saxo, saxo bank, saxo bank equities, saxo bank group, saxo bank mads koefoed, saxo bank saxo tv, saxo bank trading, saxo bank trading floor, saxo bank tradingfloor.com, saxo bank tv, saxo capital markets, saxo traders, saxo trading, saxo tv, saxo tv saxo bank, saxo tv trades, saxo tv trading, saxo tv trading floor, saxo tv tradingfloor, saxo tv tradingfloor.com, saxobank, saxobank.com, saxotrader, saxotv, second quarter, trade idea, trader, traders, trading, trading equities, trading equity, trading floor, trading floor saxo tv, trading platform, tradingfloor, tradingfloor saxo bank, tradingfloor saxo tv, tradingfloor.com, tradingfloor.com saxo tv, tradingfloorcom, wall street

Switch to