NEW YORK (TheStreet) -- Alcoa  (AA) , the world's third-largest aluminum producer, reports third-quarter earnings after the closing bell on Wednesday, and here's what analysts are expecting from the company.

The consensus estimate calls for Alcoa to report earnings per share of 23 cents on revenue of $5.85 billion. In the second quarter, Alcoa reported earnings of 18 cents a share, which beat analysts' expectations of 12 cents a share.

Alcoa also beat revenue estimates for the second quarter when it reported $5.836 billion, compared to analysts' expectations of $5.656 billion.

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In the third quarter last year, Alcoa reported earnings of 11 cents a share on revenue of $5.765 billion. Analysts had expected earnings of 5 cents a share on revenue of $5.633 billion.

Shares were down 1.94% to $15.64 in morning trading Wednesday.

Separately, TheStreet Ratings team rates ALCOA INC as a "buy" with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate ALCOA INC (AA) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, growth in earnings per share and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Metals & Mining industry average. The net income increased by 216.0% when compared to the same quarter one year prior, rising from -$119.00 million to $138.00 million.
  • Powered by its strong earnings growth of 209.09% and other important driving factors, this stock has surged by 91.52% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • ALCOA INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ALCOA INC swung to a loss, reporting -$2.15 versus $0.17 in the prior year. This year, the market expects an improvement in earnings ($0.69 versus -$2.15).
  • Net operating cash flow has remained constant at $518.00 million with no significant change when compared to the same quarter last year. Along with maintaining stable cash flow from operations, the firm exceeded the industry average cash flow growth rate of -9.29%.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 0.7%. Since the same quarter one year prior, revenues slightly dropped by 0.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • You can view the full analysis from the report here: AA Ratings Report

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