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Wednesday, August 8, 2012

Alcoa Inc stock forecast 2013

Alcoa Inc stock forecast 2013 : Alcoa Inc., the biggest U.S. aluminum producer, kicked off the second-quarter earnings season Monday by reporting a net loss of $2 million, or 0 cents per share, reflecting the sting of slumping aluminum prices. The loss compared to a profit of $322 million, or 28 cents per share, in the second quarter of 2011. Excluding special items, the New York-based company earned $61 million, or 6 cents per share, slightly above analysts' consensus estimate of 5 cents.

Analysts had lowered their projections considerably in the last month as aluminum prices continued to fall. Sales were $5.96 billion, higher than Wall Street estimates of $5.81 billion, but down 9 percent from $6.59 billion in the April-June quarter last year. The company reiterated its expectation that overall aluminum demand will grow 7 percent this year, turning a worldwide supply surplus into a deficit.

Alcoa Inc (NYSE:AA) reported that it struck a deal to supply drill pipe manufactured of an aluminum alloy to Pennsylvania General Energy, which oversees natural gas wells in the Pennsylvania’s Marcellus Shale formation.

The aluminum alloy, replacing steel, which is used normally for drill pipe, would let PGE drill deeper and would also consume less energy, according the drilling firm.

Alcoa reported that it will make 3,500 feet of 4.5 inch drill pipe for PGE, which will make it simple to expand the reach of drilling rigs on natural gas wells to almost 7,500 feet, which is 1,000 feet deeper than usual steel drill pipe can go without using bigger, more expensive rigs, according to the aluminum firm report.

Alcoa Inc.’s volume of 14.63 million shares was less than its average volume of 23.24 million shares. The stock after opening at $8.31 touched high price of $8.45 and settled at $8.37 after gaining 2.32%.

In the liquidity ratios, the company booked 1.26 as current ratio while its debt to equity ratio was 0.70 and long-term debt to equity ratio remained 0.63. The Company had overall cash at hand $1.71 million and a book value per share at $12.75 in the most recent quarter.

Measuring Alcoa Inc. competitiveness with another firm across its sector, AA stock is lagging behind from its 200 day moving average with -11.33% while the stock is moving down from SMA50 with -1.22% and traded at lowest level during the previous trading session at $8.26.

Shares of the company hit the 52 week low range with $7.97 per share while its 52 week high level was $13.27, which compares with last trade ending price of $8.37.

Its competitors Aluminum Corp. of China Limited (ADR) (NYSE:ACH) shares were down from 200 day moving average of -11.97% and traded as low as $10.27 per share in last session.

Alcoa has a P/E of 12.1 based on fiscal 2012 forecasts of 82 cents a share, and forward P/E of 10.4 based on fiscal 2013 forecasts of 96 cents a share. Considering how many stocks have run up in the last six months, there aren’t many opportunities for value out there.

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