Wall Street Waiting on Alcoa (NYSE:AA)
Come on Alcoa Inc. (NYSE:AA), its shares are down 60% from its 52-week high, and if the company doesn't have anything good to report, expect a new 52-week low and stocks to tank.
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That's right, if Alcoa starts Monday's earnings season of weak, all major equities are headed to the down side. Analysts surveyed by Thomson Reuters, on average, forecast Alcoa's (AA) earnings of 12 cents a share on revenue of $5.05 billion, let's hope they hit that number.
Over the past 12 months Alcoa Inc (AA) shares have traded between $9.04 and its 52-week high of $17.6. Alcoa Inc shares are now trading with a P/E Ratio of 0 and EPS of -0.87.
Alcoa has forecast a 10 percent increase in global aluminum consumption this year, driven by strong demand from China and improving demand in the U.S. and Europe.
Since then, China's economic growth has shown signs of moderating, although industrial production and other indicators remained relatively strong, according to a June report from the World Bank.
In addition, Europe is working to resolve a debt crisis in financially troubled countries such as Greece, Portugal and Spain.
About half of Alcoa's sales are in the U.S., 27 percent in Europe, 15 percent in the Asian-Pacific region and the rest in North and South America.
(BusinessWeek.com) WHY IT MATTERS: Alcoa is the first company in the Dow Jones Industrial average to issue earnings results. Its performance can reflect economic trends because of its diverse customer base, which ranges from aerospace and construction to electronics and beverage cans.
WHAT'S EXPECTED: Analysts surveyed by Thomson Reuters, on average, forecast earnings of 12 cents a share on revenue of $5.05 billion.
ALCOA CHART FUN