20.89 -0.10 (-0.48%)
After hours: 6:07PM EST
|Bid||20.90 x 900|
|Ask||20.94 x 3100|
|Day's range||20.71 - 21.40|
|52-week range||16.46 - 36.72|
|Beta (3Y monthly)||1.66|
|PE ratio (TTM)||N/A|
|Earnings date||14 Jan 2020 - 20 Jan 2020|
|Forward dividend & yield||N/A (N/A)|
|1y target est||25.33|
(Bloomberg Opinion) -- The internet came to life 50 years ago this week, with a simple message sent from the University of California, Los Angeles to the Stanford Research Institute. The system crashed only two characters into the transmission of the word “login”: SRI received only “lo” — “as in ‘lo and behold!’” in the words of UCLA’s Leonard Kleinrock. The UCLA terminal operators’ logbook, with its record of “Talked to SRI host to host,” is the internet’s birth certificate. Five decades later, half the world uses the internet. It took almost the entirety of human existence for half the world’s people to live in cities. It took 27 years for the global population on the internet to grow from less than 1% to more than 50%. It’s hard to imagine contemporary government, finance or media running without the internet. The internet, and with it the process of digitizing businesses and economies, is now a matter of national focus in dozens of countries. Earlier this year, my BloombergNEF colleagues analyzed 40 national industrial digitization strategies. They then ranked countries based on the ambition of their digital efforts, the alignment of public- and private-sector goals, and the capital, workforce and technology employed to digitize at greater scale. Of the top 10, four countries are Asian, and four are European. BloombergNEF’s analysis identifies key commonalities between the countries that have been most successful in using internet-enabled technologies, such as the internet of things and artificial intelligence to make domestic industries more globally competitive. The most successful models align private-sector goals with national digital policies that focus on a few strategic areas. Digitization is not just for wealthy economies (the top 10 include Singapore, with a per capita GDP of $94,000, and China, with a per capita GDP of $17,000), but the skills gap is a concern everywhere. And every country fears falling behind in artificial intelligence strategies, even the perceived leaders such as Germany, the U.K. and Israel. There’s another thing that worries newly digitizing countries: information and communications technology infrastructure. For most of the emerging markets BloombergNEF analyzed, building the infrastructure to allow connectivity and internet access is the crucial first step. That ICT backbone, as BloombergNEF calls it, is not just as important as reliable electricity, but it’s also inextricably linked to it in developing countries. Highly distributed, increasingly renewable power in emerging markets depends upon ICT to integrate with the electricity network and carry out transactions between buyers and sellers off the grid. That same ICT network depends upon reliable power to operate. Today, neither network can live without the other. And no country’s digitization strategy will work without these networks being integrated and reliable. In the developed world, electricity was a precursor to the internet; in the developing world, both networks are growing together. Many countries that are building both networks simultaneously are layering their digitization strategies on top as well. This combination of networks and strategies will be crucial for all economies to grow and adapt, be they already rich or still emerging. Weekend readingWe misremember the internet’s origins, says Ingrid Burrington. Lower-income children ages 8 to 12 spend almost two hours more time in front of screen media than higher-income children of the same age. There is also a significant homework gap in computer access by income. The Porsche 911 and Nissan GT-R are among the 10 cars with the lowest five-year depreciation. The BMW 5, 6 and 7 Series are among the 10 cars with the highest five-year depreciation. The downturn in U.S. shale drilling has been so steep and brisk that oilfield companies are scrapping pumps, pipes and storage tanks. The secret (and large) supply chain of an AmazonBasics alkaline battery. Nobel laureate M. Stanley Whittingham is working to find the ultimate limit of lithium-ion storage batteries. A profile of Sylvie Bénard of LVMH Moet Hennessy Louis Vuitton SE, the executive in charge of the luxury group’s sustainability efforts. WeWork’s business model was risky, it required an unusual source of investment, “and these days Softbank is the most unusual of all.” Softbank Group Corp.’s Masayoshi Son spoke to an almost empty room at the Future Investment Initiative in Saudi Arabia. The history of U.S. military service dogs. Video series of 16 counterintuitive fundraising lessons from seed and series A venture firm NFX. Alcoa Corp. is selling a 32,000-acre ranch in Rockdale, Texas, that includes 14 lakes, mineral rights and an aluminum smelter it shut down in 2008. Nigeria is reviving a steel plant on hold since the Soviet era. Bumper sticker and parking permit safety risks, according to the National Capital Region Threat Intelligence Consortium. Bloomberg Economics’ New Economy Drivers and Disrupters Report. Get Sparklines delivered to your inbox. Sign up here. And subscribe to Bloomberg All Access and get much, much more. You’ll receive our unmatched global news coverage and two in-depth daily newsletters, the Bloomberg Open and the Bloomberg Close.To contact the author of this story: Nathaniel Bullard at email@example.comTo contact the editor responsible for this story: Brooke Sample at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nathaniel Bullard is a BloombergNEF energy analyst, covering technology and business model innovation and system-wide resource transitions.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- Alcoa Corp. is trying to sell its ranch.The metals giant is looking to jettison as much as $1 billion in assets, including the roughly 32,000-acre property in Rockdale, Texas, in a push to trim costs. Alcoa is asking $250 million for Sandow Lakes Ranch, which comes with wildlife, mineral rights, 14 lakes and a smelter that once produced aluminum.The property, about 35 miles northeast of Austin, is 31 miles long and more than twice the size of Manhattan. Alcoa has owned the property since the 1950s and had a plant there that was shut down in 2008.There are white-tailed deer, hogs, quail and two nesting pairs of American bald eagles on the property. The land also features an industrial park that’s now home to a cryptocurrency mining operation.Alcoa has been trying to find a buyer for the land for at least the past three years. The company announced last week that it wants to sell between $500 million to $1 billion in assets over the next 12 to 18 months.Shares gained 0.5% to $21.63 at 1:48 p.m. in New York.At the end of a call with analysts earlier this month, Justin Bergner, an analyst at G.research, asked Alcoa’s Chief Financial Officer Bill Oplinger if the company still owned the ranch.“It’s been for sale now for a few years, and so if you want a good ranch in Texas, give me a call.” Oplinger said, drawing laughs.Oplinger was being serious. Alcoa, as well as the broker for the ranch, said they’re in negotiations with buyers and are hopeful they can close a sale soon.“We’ve turned the corner, and we’re on the home stretch to closing a deal,” said Bernard Uechtritz, the founder of Icon Global Group, which is listing the property. “We have a good solid group of buyers that will take the whole thing, that’s as much as I can tell you at this point, but there’s going to be big news soon.”(Updates with shares.)To contact the reporter on this story: Joe Deaux in New York at email@example.comTo contact the editors responsible for this story: Craig Giammona at firstname.lastname@example.org, Peter EichenbaumFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Alcoa Corp. shares headed for the biggest gain since early 2016 as investors welcomed the company’s plans to get leaner by selling assets to weather a market rout.The largest U.S. aluminum maker outlined its restructuring plans in an earnings statement Wednesday in which it predicted that world demand may contract by as much as 0.6% this year, reversing a July outlook for growth of at least 1.25%. The asset sales follow the company’s worst streak of quarterly losses in at least three years.The forecast came a day after the International Monetary Fund cut its 2019 global growth forecast, citing a broad deceleration across the largest economies. Metal producers have been caught in the crossfire as a trade war between the U.S. and China hurt global growth, curbing demand for industrial raw materials.“A leaner and lower-cost Alcoa should be well positioned for the eventual cyclical recovery in global demand for metals, and longer term investors may consider buying these shares at current levels,” Jeffries LLC analysts Christopher LaFemina and Patricia Hove said in a note.Alcoa shares climbed 12% to $21.49 at 9:55 a.m. in New York. A close at that level would mark the biggest since February 2016. The rally trimmed this year’s decline to 19%.The average price for alumina, a key aluminum ingredient and one sold by Alcoa, dropped 44% in the third quarter from the same period a year earlier, according to S&P Global Platts. Chief Executive Officer Roy Harvey expressed optimism that the downturn in the market won’t last.“When we think about 2020, we see demand springing back,” Harvey said in a telephone interview. “This isn’t a problem with the consumption of aluminum, this is a hiccup with what’s happening in the global economy.”Over the next 12 to 18 months, Alcoa intends to pursue non-core asset sales expected to generate an estimated $500 million to $1 billion in net proceeds.The company also plans to realign its operating portfolio, and has placed under review 1.5 million metric tons of smelting capacity and 4 million metric tons of alumina refining capacity over the next five years. The review will consider opportunities for significant improvement, potential curtailments, closures or divestitures.“It’s also simply a way that we can make sure we have the right cash to help weather through the different parts of the market cycle,” Harvey said Wednesday. “That is for us an important component of making sure we have the cash to be able to move through our restructuring process.”Alcoa said it’s implementing changes to make it leaner. The restructuring costs will be paid in cash in the fourth quarter 2019 with the remainder in the first quarter 2020, the company said. The new operating model is expected to generate annual savings of about $60 million in operating costs beginning in the second quarter of 2020.The company reported a third-quarter loss of 44 cents a share, worse than analysts expected. Industrial metals have fallen as the U.S.-China trade war weighs on global manufacturing and economic growth.Goldman Sachs Group Inc. lowered its price forecasts on aluminum earlier this month, citing strong supply growth outside of China and the negative impact of economic uncertainty on capital spending. Harvey said the downturn may not last.“When we think about 2020, we see demand springing back,” Harvey said. “This isn’t a problem with the consumption of aluminum, this is a hiccup with what’s happening in the global economy that we believe will come roaring back once this uncertainty is behind us.”(Updates with shares, analysts’ comments in fifth and seventh paragraphs.)To contact the reporter on this story: Joe Deaux in New York at email@example.comTo contact the editors responsible for this story: Luzi Ann Javier at firstname.lastname@example.org, Joe RichterFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Alcoa (AA) delivered earnings and revenue surprises of -25.71% and 0.89%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?
Alcoa's Q3 results are set to be released tomorrow after markets close. Aluminum prices have been weak this year, and the stock is down almost 28%.
Alcoa (AA) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Alcoa, Arconic, and NOVA Chemicals have filed a lawsuit against several US railroad companies. One defendant is BNSF Railway, owned by Berkshire Hathaway.
Investors need to pay close attention to Alcoa Corporation (AA) stock based on the movements in the options market lately.
(Bloomberg) -- The upbeat picture painted by this past week’s blowout bank earnings heralded a promising earnings season. Too bad other industries didn’t get the memo.In the same week the five biggest U.S. lenders raked in over $30 billion in earnings for the first time, others around the globe left investors wondering how the bottom fell out so fast. Netflix Inc. sunk the most in three years amid a surprise drop in U.S. customers, while online retailer Asos Plc plunged after issuing another profit warning. Meanwhile, one-time earnings bellwether Alcoa Corp. beat on profit -- but also cut its forecast for global aluminum demand, adding to concerns that trade frictions are eroding the outlook for the industrial metal.This week, a range of high-profile companies report results, from tech titan Amazon.com Inc. and embattled aircraft maker Boeing Co. to burger behemoth McDonald’s Corp. and electric-car maker Tesla Inc. The earnings will offer a glimpse into every major sector of the economy, and Wall Street will be watching for signals like reduced hiring expectations, stalled capital expenses or consumers’ waning willingness to accept price hikes.With stock markets trending near record highs but recession risks on the rise, the second quarter could be yet another notch in the longest bull market in history -- or the beginning of its end.Here’s a look at what we’re watching:CarsAutomaker earnings may show how much the one-two punch of slowing sales and massive technological disruptions are impacting the industry’s bottom line.Those challenges have forced Ford Motor Co. and Volkswagen AG further into one another’s arms. After extending an alliance to include joint work on electric and autonomous vehicles, they’re expected to report stagnant or shrinking revenue. Daimler AG will put out finalized results weeks after the Mercedes-Benz maker posted a preliminary loss along with its fourth profit warning in just over a year. And analysts are projecting another unprofitable quarter for Tesla, which is blowing its battery-powered rivals out of the water but is still struggling to make money.The challenges extend to Asia, too. Nissan Motor Co. is set to give more details about restructuring efforts including potential job cuts as it tries to revive profitability that’s at a decade low. Jaguar Land Rover’s Indian owner Tata Motors Ltd. is also under pressure to show its cost-cut efforts are bearing fruit as it’s hit with hurdles from Brexit, a slowdown in China and flagging demand for diesel vehicles.ConsumerIf sales slow at McDonald’s, Starbucks Corp. or Chipotle Mexican Grill Inc., it will be a sign that consumers are cutting back on spending and eating out less. Higher labor and commodity costs have also forced restaurants to raise prices to maintain margins, and diners might balk at the idea of paying more for coffee and guacamole-stuffed burritos.Higher prices in recent quarters have benefited Starbucks as well as beverage makers Coca-Cola Co. and PepsiCo Inc. At Anheuser-Busch InBev, which just sold its Australian beer assets, investors will listen for any signs an IPO for the rest of its Asian business could be back on the table.China, meanwhile, will be the focus when European luxury conglomerates LVMH and Kering SA report results. The health of sales in that region will be scrutinized after showing surprising resilience in recent quarters, despite an ongoing trade war with the U.S. and the nation’s economic slowdown. Hong Kong protests, meanwhile, are hurting luxury spending at companies such as Richemont and Swatch Group AG.EntertainmentAT&T Inc. and Comcast Corp. can’t wait to enter the battle against Netflix and Walt Disney Co.’s Hulu for streaming-video viewers, but they have to contend with the continued decline of their legacy businesses first. As consumers flee traditional cable packages in favor of services like Netflix, AT&T and Comcast are expected to lose television customers, so investors will watch for signs that broadband subscriber growth can offset those declines.With casino companies including Las Vegas Sands Corp. and MGM Resorts International and their Asia subsidiaries reporting, investors will be on the lookout for any impact from China’s economic weakness.IndustrialsThe future of the 737 Max will be in focus when we hear from Boeing, which plans to report a $4.9 billion accounting charge related to its beleaguered jetliner. Southwest Airlines Co. and American Airlines Group Inc. have already removed the Max from their flight schedules through early November. Southwest is the model’s biggest operator while American is the world’s largest airline, and both carriers are sure to field questions about the Boeing crisis on their conference calls with analysts this week.Another company on the hot seat is aerospace-parts giant United Technologies Corp., whose merger agreement with Raytheon Co. has drawn fire from activist investors Dan Loeb and Bill Ackman. Investors in Caterpillar Inc., meanwhile, will look for more clarity on global demand for the company’s iconic machines in the second half of the year.TechnologyTech investors have a lot of information heading their way, with Facebook Inc., Alphabet Inc., Intel Corp. and Twitter Inc. all reporting. Their main question is whether those firms can keep revenue climbing amid the U.S.-China trade war and signs of slowing economic growth. There’s also mounting regulatory pressure on the sector around antitrust and privacy concerns. One player that’s avoided the recent scrutiny is Microsoft Corp., whose quarterly profit just topped estimates on the strength of its cloud-computing business.For hardware companies like Texas Instruments Inc. and Intel, the focus will be on the loss of market share in China as the companies grapple with a ban on exports to Huawei Technologies Co., a key customer.Amazon’s Prime Day got scads of attention last week, but it won’t be reflected in the company’s upcoming results. Investors in the e-commerce giant will be paying close attention to the fast-growing advertising and cloud business units.BankingEurope’s banks are expected to trail their U.S. peers for yet another quarter as global trade tensions continue to weigh on client activity. And unlike American banks, the Europeans don’t have a healthy stream of income from lending to fall back on due to negative interest rates.Deutsche Bank AG has already announced a loss for the quarter as it embarks on massive cutbacks, and investors will press for more details. France’s BNP Paribas SA has agreed to take on Deutsche’s hedge-fund and electronic-trading clients, but the integration is proving difficult and BNP will have to show progress in turning its own stocks trading unit around following embarrassing losses last year.Finally, Credit Suisse Group AG will have to answer questions about the surprise exit of a key wealth management executive who was seen as a potential successor to CEO Tidjane Thiam.\--With assistance from Brendan Case, Craig Giammona, Joe Deaux, Molly Schuetz, Craig Trudell, John J. Edwards III, Christian Baumgaertel, Eric Pfanner, Ville Heiskanen, Reed Stevenson and Christopher Palmeri.To contact the reporters on this story: Matthew Boyle in New York at email@example.com;Anne Riley Moffat in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Kevin Miller at email@example.com, Jonathan RoederFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
On Wednesday, Alcoa (AA) released its second-quarter earnings report after the markets closed. The company reported revenues of $2.71 billion.
Alcoa (AA) delivered earnings and revenue surprises of 97.06% and -2.92%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?