Alcoa: Color on Qtr
- Cowen & Co notes AA reported adjusted 2Q15 EPS of $0.19, below firm's $0.20 estimate and consensus $0.23. Adjusted EBITDA of $942MM was generally in line with consensus and above our $880MM. Firm believes Alcoa shares will continue to be dominated by macro headlines and that attention has largely shifted away from 2Q results.
- Stifel Research notes 2Q15 EPS of $0.19 was about inline with firm's below-consensus estimate of $0.20. Looking ahead, Alcoa guided to cost improvements in EP&S as well as growing demand for autos/aerospace and a seasonal uptick in packaging benefitting GRP. Both mid and downstream segments are expected to see a 5-10% y/y improvement in ATOI that firm believes will offset commodity price declines in the upstream segments. As a result, it maintains 3Q15 EPS estimate of $0.16 and 4Q15 EPS estimate of $0.20. Stifel maintains Buy rating and $18 target price.