Alcoa Inc. (NYSE: AA) reported first-quarter results last Monday, beating earnings per share estimates by a nickel but falling short on revenues, compared with analysts’ estimates, and way short compared with the company’s revenues in the first quarter of 2015.
The company also lowered earnings per share guidance last week, saying that it did so “to better reflect aerospace market conditions and Firth Rixson performance.” We looked at what that might mean for Boeing and Airbus, but what it means for Alcoa is that its planned spin-off might not be as beneficial for shareholders as previously thought.
Alcoa plans to spin off its engineered products and solutions division into a new company to be called Arconic later this year. The spin-off was supposed to take advantage of rising demand for new commercial airplanes. But that demand has stalled, and Alcoa’s 2014 acquisition of jet-engine parts maker Firth Rixson has not been an unqualified success as a result.
Several analysts have weighed in with changes to their estimates and ratings on Alcoa. Here are some recent revisions and comments.
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