Alcoa, Bed Bath and Beyond Kick Off First-Quarter Earnings This Week
Stocks have been on a role since the beginning of March, with the major averages touching their highest levels since at least mid-February. With first-quarter earnings set to start in the coming week and the unemployment report out of the way, investors will want to see if the rally can continue.
Alcoa Inc.
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PowerRating), the largest U.S. aluminum producer, reports first-quarter results on Tuesday. Analysts expect the company to report its second straight quarterly loss as aluminum demand sinks amid the weakening economy. Alcoa is expected to report a loss of 57 cents per share on revenue of $4.08 billion, according to Reuters Estimates. Shares have been under pressure, dropping 34.8% in the first quarter. However, shares have recently made a comeback, rising 31.3% since the beginning of March as some investors believe the worst of recession has passed.
In looking back at Alcoa’s session-to-session performance following after-hours earnings events, shares are mixed. There are 11 wider next-day moves on the heels of evening financials and nine examples of narrower share moves. On January 12, the stocks fell 0.8% in after-hours trading and extended its decline in the following regular session, ending down 5.1%.
Bed Bath & Beyond
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PowerRating) is also set to report its quarterly results after the close on Tuesday. Analysts expect the home goods retailer to report fiscal fourth-quarter earnings of 44 cents per share, down one-third from a year ago, on revenue of $1.9 billion. Shares broke above their 50-day moving average in mid-March and have gained more than 28% since the beginning of March.
Investors trading into earnings should know that this stock likes to reverse its moves. In the long term, however, the stock is split between wider and narrower next-day share moves following evening earnings releases over the past 20 quarters MidnightTrader.com has tracked. In the near-term, the stock favors narrowing, however, cutting back or reversing its evening performance in next-day trade in six of the last seven quarters. On January 7, the stock fell 0.2% in after-hours trading and reversed in the following regular session, ending up 4.6%.
Cassie Slane is a Senior Editor at www.MidnightTrader.com.