What to Expect from Alcoa 2018 First Fiscal Quarterly Earnings

American industrial company Alcoa Corporation is scheduled to release its earnings report for the first quarter after the market closes on Wednesday . Alcoa shares which were up by more than 6% during Tuesday’s trading session is expected to rise further after the release of its earnings report should it meet most analyst expectations.

Fourth Quarter Earnings

For Alcoa’s fourth quarter earnings, it posted a net loss of $1.06 per share or a total of $196 million which is attributed as a financial effect of the company’s announcement regarding its strategic priorities. Alcoa also had a net income excluding special items of $1.04 per share or $195 million which is 44% higher from the same quarter last year.

Alcoa’s EBITDA or earnings before interest, taxes, depreciation, and amortization excluding special items was also higher by 38%. The revenue of Alcoa, on the other hand was at $3.2 billion representing a growth of 7%.

By the end of 2017, Alcoa had a cash balance of $1.36 billion and debt worth $1.41 billion with their net debt at $0.5 billion.

Alcoa’s full year earnings last year was at around $2.35 billion which is higher than their full year earnings last 2016 while its full-year net income came at $1.16 per share or $217 million while their adjusted net income was at $3.01 per share. Alcoa’s full-year revenue rose 25% higher from the year 2016.

During the company’s fourth quarter earnings call, it announced that salary defined benefit pension plans from the United States and Canada would be freezed starting January 1, 2021. Alcoa will also purse its progress on strategic priorities in reducing complexity and drive returns as well as strengthen its balance sheet.

Q1 Earnings Expectations

Revenue of the company is estimated by analysts to rise by 17.2% at around $3.11 billion with their quarterly earnings forecasted to come at $0.65 per share representing a growth of 3.2%.

The company which have shown an upbeat outlook for solid earning numbers during the past couple of months is mostly expected by investors to post an earnings beat with analysts giving Alcoa’s stock a strong buy rating with the stock price given a target of $59.25 representing an upside of 7.8% from its closing price last week.

Aside from Alcoa’s Q1 2018 earnings, analysts would also looking at Alcoa’s guidance for its full year 2018 earnings despite the company previously stating that its earnings may be dragged by higher costs and expenses.

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