Home Headline News Alcoa Corporation (NYSE:AA) Reports Q2 Loss

Alcoa Corporation (NYSE:AA) Reports Q2 Loss

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Alcoa Corporation (NYSE:AA) Reports Q2 Loss

Alcoa (AA) came out with a quarterly loss of $0.01 per share versus the Zacks Consensus Estimate of a loss of $0.34. This compares to earnings of $1.52 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 97.06%. A quarter ago, it was expected that this bauxite, alumina and aluminum products company would post a loss of $0.17 per share when it actually produced a loss of $0.23, delivering a surprise of -35.29%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Alcoa, which belongs to the Zacks Metal Products – Distribution industry, posted revenues of $2.71 billion for the quarter ended June 2019, missing the Zacks Consensus Estimate by 2.92%. This compares to year-ago revenues of $3.58 billion. The company has topped consensus revenue estimates just once over the last four quarters.

The sustainability of the stock’s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management’s commentary on the earnings call .

Alcoa shares have lost about 12.3% since the beginning of the year versus the S&P 500’s gain of 19.8%.

What’s Next for Alcoa?

While Alcoa has underperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company’s earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power o f earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Alcoa was mixed. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.06 on $2.63 billion in revenues for the coming quarter and -$0.05 on $11.10 billion in revenues for the current fiscal year.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 24.41.

The projected lower bound is: 21.78.

The projected closing price is: 23.09.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 25 white candles and 23 black candles for a net of 2 white candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 75.9729. This is not an overbought or oversold reading. The last signal was a sell 0 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 53.50. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 23 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 52. This is not a topping or bottoming area. The last signal was a sell 0 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 2 period(s) ago.

Rex Takasugi – TD Profile

ALCOA CORP closed down -0.170 at 23.150. Volume was 8% below average (neutral) and Bollinger Bands were 58% narrower than normal.

Open High Low Close Volume___
23.320 23.370 22.820 23.150 664,025

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period     50-period     200-period
Close: 22.77 22.93 28.74
Volatility: 35 36 51
Volume: 646,851 675,053 732,106

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

ALCOA CORP is currently 19.4% below its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of AA.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on AA.N and have had this outlook for the last 17 periods.

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