Over 40 years’ heritage
185,800 clients worldwide
Over 15,000 markets

Alcoa set for Q1 results

Alcoa disappointed traders with its fourth-quarter results but the share price has more than recovered as it prepares to reveal its first-quarter earnings on 8 April 2014. 

Alcoa is trading at $11.85, up nearly 11% since the company revealed worse-than-expected fourth-quarter earnings in January 2014. The Aluminium producer reported fourth-quarter earnings per share of 4 cents and revenue of $5.59 billion, while the market consensus was for 11 cents and $5.39 billion respectively. Its fourth-quarter revenue was below the third-quarter figure of $5.77 billion.

Alcoa is trying to start afresh in 2014; it has put the bribery charges behind it and has incurred a number of write-downs over the years in relation to asset valuations. Like other companies in the mineral sector, it is adjusting to the drop in metal prices by cost-cutting and focusing on efficiency. In January, the CEO Klaus Klienfeld stated he is ‘clearing a path for Alcoa’s continued transformation in 2014’.

The stock is finding support at the 50-day moving average of $11.67. If the first-quarter results are strong, we could break the $12 mark which has proved to be difficult in recent weeks.

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.