Wednesday, April 6, 2011

Alcoa (AA) Soars to 52-Week High

Shares of Alcoa (NYSE:AA) surged to 52-week highs on Tuesday, as the company closes in on its earnings report day, which is considered the kick-off of the earnings season.

Anticipation has been building as the company took time during the worst parts of the recession to lower costs, and now from that strong position the price of aluminum has been rising, along with aluminum demand, creating a growing expectation that the company will have a good quarterly report and guidance.

That also means margins and earnings should have risen significantly, as well as revenue in the quarter.

Once concern would be if there are any consequences going forward from the earthquake in Japan in regard to markets Alcoa serves, such as with auto makers. That will have no effect on the latest quarter, but it possibly could on guidance.

Alcoa closed Tuesday at $18.05, gaining $0.49, or 2.79 percent.

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