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Stock Market & Financial Investment News

News Breaks
April 7, 2014
12:38 EDTAAEarnings Preview: Alcoa shares near 52-week high ahead of Q1 report
Alcoa (AA) is scheduled to report first quarter earnings after the close on Tuesday, April 8, with a conference call scheduled for 5:00 pm ET. Alcoa is a global manufacturer of aluminum products. EXPECTATIONS: Analysts are looking for EPS of 5c on revenue of $5.56B, according to First Call. The consensus range for EPS is 0c-8c on revenue of $5.39B-$5.7B. LAST QUARTER: Alcoa reported fourth quarter adjusted EPS of 4c against estimates for 6c on revenue of $5.6B against estimates for $5.38B. The company forecast 2014 global aluminum demand growth of 7%. CEO Klaus Kleinfeld said, "we put a number of legacy matters behind us, clearing a path for Alcoa’s continued transformation in 2014." On the company's Q4 earnings conference call, management targeted $850M of additional year-over-year productivity gains in 2014. This was expected to be achieved by overhead cost reductions, procurement savings, and process productivity. For 2014, the company said it expects to build value-add with growth capital of $500M, an investment in its Saudi JV of $125M, and management of sustaining capital of $750M. Generating positive free cash flow will continue to be the target for 2014, and the company expects to manage its capital structure to a debt to capital ratio in the range of 30%-35% by the end of 2014. The company's initial outlook for the 2014 Alumina supply-demand situation is that the market will be in surplus of just under 2M metric tons or roughly 2% of the global market. STREET RESEARCH: Street research has been mixed in the weeks leading up to Alcoa's Q1 earnings report. On January 21, JP Morgan upgraded Alcoa to Overweight from Neutral, citing the tightening aluminum markets and increasing regional aluminum premiums. The firm raised its price target for Alcoa to $15 from $9. On March 14, Sterne Agee initiated Alcoa with a Buy rating and $15 price target. Conversely, on March 6, Standpoint Research downgraded Alcoa to Hold from Buy. On April 2, Nomura said there was significant downside risk to Alcoa's 2014 earnings estimates given the fall in LME aluminum prices and GRP margin pressures in Europe. The firm lowered Alcoa's FY14 EPS view to 14c from 28c, and FY15 EPS view to 31c from $1.32. It reiterated its Neutral rating and $8 price target on the shares. PRICE ACTION: Despite the company's worse than expected Q4 profit, Alcoa shares have rallied approximately 18% over the past 90 days, touching a 52-week high of $13.18 in early April. Over the past twelve months, the stock is up over 51%. In early afternoon trading ahead of tomorrow's Q1 report, Alcoa shares are down just over 1%.
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July 9, 2014
16:40 EDTAAOn The Fly: Closing Wrap
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13:40 EDTAAAlcoa breaks out of top of longer-term uptrend channel, levels to watch
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13:33 EDTAAAlcoa price target raised to $18 from $15 at Argus
Argus increased its price target on Alcoa after the company reported stronger than expected Q2 results. The firm expects aluminum prices to rise modestly this year and it keeps a Buy rating on the stock.
12:30 EDTAAOn The Fly: Midday Wrap
Stocks on Wall Street were moderately higher at midday, helped in part by better than expected earnings from Alcoa (AA), solid monthly numbers from the airlines sector, and a bounce from the two day losing streak that had seen the S&P lose 1% and the Nasdaq pullback by more than 2%. The market has been unable to gather any upside momentum and has moved in a narrow range throughout the morning, as investors await the release of the Fed’s FOMC minutes. ECONOMIC EVENTS: The minutes from the Federal Open Market Committee meeting held June 17-18 are scheduled to be released at 2:00 pm ET. In China, the producer-price index declined 1.1% from a year earlier, compared with a consensus forecast for a 1% drop. China's consumer-price index rose 2.3%, below projections for a 2.4% gain. COMPANY NEWS: Alcoa swung to a second-quarter profit of 18c a share on an adjusted basis, beating the consensus estimate of 7c a share, as its revenue also topped expectations. The aluminum producer, whose report is widely considered to mark the start of an earnings season, said its transformation is in "high gear" and that its cost position continues to improve. The stock rose 5% near midday following its report. MAJOR MOVERS: Among the notable gainers was AeroVironment (AVAV), which develops a portfolio of products and services for unmanned aircraft and efficient energy systems. The stock rallied 14% after the company reported better than expected fourth quarter results. Also higher was Reynolds American (RAI), which rose more than 2.5% after the U.K.'s Daily Mail reported that British American Tobacco (BTI), which currently holds a 42% stake in Reynolds, is speculated to be "on the verge" of buying out the remainder of its U.S. peer that it does not already own. Among the noteworthy losers was IT infrastructure technology provider Gigamon (GIMO), which was downgraded by at least five firms and plunged 32% after the company lowered its Q2 revenue guidance, citing challenges closing deals. Also lower following its earnings reports was specialty storage and organizational product retailer The Container Store (TCS), which fell 10%. INDEXES: Near midday, the Dow was up 36.86, or 0.22%, to 16,943.48, the Nasdaq was up 18.93, or 0.43%, to 4,410.39, and the S&P 500 was up 4.59, or 0.23%, to 1,968.30.
12:27 EDTAAAlcoa hits 52-week high after better than expected results
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09:35 EDTAAActive equity options trading on open
Active equity options trading on open according to Track Data: AAPL AA FB AMZN TSLA TWTR MU NFLX GG CELG
08:26 EDTAAAlcoa shares should be bought, says Sterne Agee
After Alcoa reported stronger than expected Q2 results, Sterne Agee expects the company to be boosted by strength in its aerospace business going forward. The firm believes that the company's fundamentals are improving.
07:37 EDTAAAlcoa price target raised to $18.50 from $15 at JPMorgan
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07:26 EDTAAInvestors hope solid earnings can reverse losing streak
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07:02 EDTAAAlcoa price target raised to $17 from $15 at Stifel
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July 8, 2014
18:28 EDTAAOn The Fly: After Hours Movers
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17:55 EDTAAAlcoa expects Q3 EPS to 'continue to build on strong second quarter'
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16:14 EDTAAAlcoa raises 2014 estimate for North America commercial transportation market
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16:12 EDTAAAlcoa CEO says cost position continues to improve
Says company's transformation in "high gear." Says aerospace business is a tailwind due to strong demand for commercial aircraft. Says well-positioned to capture upside from recent investments. Klaus Kleinfeld is speaking on CNBC.
16:04 EDTAAAlcoa continues to see 2014 global aerospace growth of 8%-9%
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16:03 EDTAAAlcoa continues to see 2014 global aluminum demand growth of 7%
Sees global aluminum deficit increasing; global alumina surplus shrinking.
16:03 EDTAAAlcoa reports Q2 adjusted EPS 18c, consensus 12c
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16:00 EDTAAOptions Update; July 8, 2014
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15:23 EDTAANotable companies reporting after market close
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14:26 EDTAAAlcoa July weekly 15 straddle priced for 4.5% move into Q2
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