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Alcoa Earnings Up Next

By Seth Jayson - Updated Apr 10, 2017 at 1:55PM

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Checking expectations

Alcoa (NYSE: AA) is expected to report Q1 earnings on April 8. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Alcoa's revenues will drop -2.2% and EPS will wither -10.0%.

The average estimate for revenue is $5.88 billion. On the bottom line, the average EPS estimate is $0.09.

Revenue details
Last quarter, Alcoa reported revenue of $5.90 billion. GAAP reported sales were 1.5% lower than the prior-year quarter's $5.99 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.06. GAAP EPS were $0.21 for Q4 against -$0.18 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 15.8%, 300 basis points better than the prior-year quarter. Operating margin was 4.0%, 260 basis points better than the prior-year quarter. Net margin was 4.1%, 730 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $24.32 billion. The average EPS estimate is $0.56.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 3,419 members out of 3,662 rating the stock outperform, and 243 members rating it underperform. Among 765 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 718 give Alcoa a green thumbs-up, and 47 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Alcoa is hold, with an average price target of $10.64.

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