Preview: Your Cheat Sheet to Alcoa Earnings

Ah. It’s that time of year again when we kick-off another season of earnings with aluminum producer Alcoa (NYSE:AA).

Rather than enter the earnings release blind, here’s your Cheat Sheet to Alcoa’s Earnings:

  • Earnings Expectations: Analysts expect earnings of $0.19 a share on revenues of $5.71 billion (Thomson Reuters).
  • Outlook: Alcoa’s outlook for 2011 will be based on whether the company continues to see higher aluminum pricesgreater global demand, and declining metal exchange inventories.
  • Keys to a Successful Earnings Announcement: Investors will be looking for an improvement in margins based on pricing power and production from Alcoa’s new lower-cost plants. Volume of production will also be critical.
  • Insider Activity: Neutral.
  • Competitors: Century Aluminum Company (NASDAQ:CENX), Alumina Limited (NYSE:AWC), Kaiser Aluminum Corp. (NASDAQ:KALU), Noranda Aluminum Holding Corporation (NYSE:NOR), and Aluminum Corp. of China (NYSE:ACH).

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