Kicking off earnings season is nothing to laugh at, especially for Alcoa, which just barely edged past estimates and still saw its stock drop.
The company’s earnings were expected to fall, though, which was reflected in its stock price over the last few days. On Friday, Alcoa opened down 2.47% and on Tuesday, after its earnings report was released, the stock dropped another 3.37%. Alcoa is creeping closer to its 52-week low.
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The aluminum producer beat estimated earnings per share by just one penny. It also reported revenue of $6 billion when estimates were at $5.8 billion. But the real bad news is a look at the future.
Analysts are forecasting poor aluminum prices, which would further hurt Alcoa. In particular, China could be a problem, according to Forbes. Supple has far outweighed demand in China, and the latest economic figures out of the country are showing import growth is down by half, at just 6.3% in June compared to 12.7% in May.
Analysts are expecting revenue to hold steady, but not grow, with 10 estimating on Yahoo! Finance that next quarter’s revenue will be $5.99 billion and revenue will be $6 billion for the following quarter.
The information contained in this article should not be construed as investment advice or as a solicitation to buy or sell any stock.