NEW YORK ( TheStreet)- Alcoa's (AA - Get Report) earnings for the second quarter could miss estimates on higher production costs and lower realized aluminum prices. However, management guidance for 2010 will define the stock price movement.
Alcoa, the largest U.S. aluminum producer, is scheduled to financial results after markets close on Monday. The company is expected to report earnings of 12 cents share, according to analysts polled by Bloomberg, compared with a loss of 19 cents for the first quarter of 2010, and a loss of 32 cents in the year-earlier second quarter.
Last week, JPMorgan analyst Michael Gambardella lowered Alcoa's earnings per share to 10 cents from an earlier forecast of 15 cents, citing lower-than-expected aluminum prices. Gambardella maintained a December price target of $15.50 since the middle of May.
During the second quarter, sales are estimated to zoom 26% to $5.02 billion from a year earlier and decline 4% from $5.23 billion for the first quarter of 2010. Meanwhile, earnings before interest, taxes, depreciation and amortization is expected to zoom 40 times to $706.3 billion from $17.3 billion for the second quarter of 2009. However, Ebitda is expected to increase marginally from $705.8 million for the first quarter of 2010.
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