Alcoa’s Q2 2016 Earnings Preview: Weakness In Aluminum Pricing To Negatively Impact Results

-2.54%
Downside
35.47
Market
34.57
Trefis
AA: Alcoa logo
AA
Alcoa

We expect Alcoa’s Q2 2016 results to be negatively impacted by the prevailing weakness in aluminum pricing. Whereas a weak pricing environment will have an adverse impact on the results of all the company’s business segments, translating into a weaker EPS number in Q2 2016, the signing of a spate of new supply contracts pertaining to the aerospace end market will boost the revenue of the Engineered Products & Solutions (EPS) division, partially offsetting a decline in revenue from other segments. This is reflected in our revenue forecasts for the full year 2016, with a similar story expected in Q2 2016.

AA Q2 Earnings Preview

Have more questions about Alcoa? See the links below.

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Alcoa

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