Commodities & Metals

Goldman Sachs Raises ALCOA Estimates Ahead of Earnings (AA)

ALCOA, Inc. (NYSE: AA) is seeing shares trade higher ahead of its earnings report after today’s close.  Goldman Sachs appears to be the initial reason as it has raised its targets on the Aluminum giant.

For this year, Goldman Sachs raised the estimates from $1.90 to a new $2.95 EPS and for next year it raised targets from $2.90 to $3.70 EPS.  Both estimates are now above consensus.

First Call has consensus earnings before the call at $2.92 EPS for this year (Dec-2008) and $3.49 EPS for fiscal Dec-2009. 

This is also part of a broader aluminum call as Goldman Sachs raised 2008 aluminum targets from $1.12/pound to $1.31/pound, and 2009 aluminum targets from $1.21/pound to $1.33/pound.

First Call has this quarter estimates at $0.48 EPS for after today’s close.  As a reminder, ALCOA has a mixed earnings history that is not usually indicative of the broader economy nor for metals in general.

Jon C. Ogg
April 7, 2008