Friday, July 9, 2010

Alcoa (NYSE:AA) Losing Confidence of Wall Street

While there is no doubt Alcoa (NYSE:AA) will show some improvement over last year when they release their quarterly numbers on Monday, as the day approaches a number of analysts have downwardly revised earnings forecasts as the price of aluminum continues to fall.

Just since April, when aluminum prices had stood at $2,400 a ton, they have plummeted to close to $2,000 a ton as of Friday.

That's significant because it happened in the third quarter, which will have a strong impact on the performance of Alcoa during that time.

Most analysts had Alcoa's earnings at between 15 cents to 19 cents a share, and that has fallen largely to 10 cents to 12 cents a share recently, with many believing they'll start losing money as the year goes on.

Over the next twelve months or so there isn't a lot of optimism about aluminum prices moving up, and that will mirror how Alcoa performs.

No comments: