Next week, the unofficial start of the Q1 earnings season gets underway when the aluminum producer Alcoa (NYSE:AA) reports its earnings on Monday after the closing bell. Along with a few other heavy-hitters, Alcoa could set the tone for what is certain to be a riveting couple of months of earnings releases.

IN PICTURES: Learn To Invest In 10 Steps

Heavy Metal
Although steel stocks and iron ore producers have been grabbing a lot of the headlines in the basic materials sector in recent weeks, Alcoa has seen its stock price quietly advance 16% since February 1, 2010. Shares of this company are up a whopping 90% compared to a year ago.

Alcoa's story is not merely one of technical recovery. Analysts are projecting the company to swing to a Q1 profit of 13 cents per share on a 25% pop in sales versus the year-ago quarter. In Q1 of 2009, Alcoa lost 59 cents per share. The company's fundamentals are improving, and it reached a state of positive free cash flow at the end of Q4 for the first time since Q2 of 2008.

Advertisement - Article continues below.

Vital Signs
The noise from Biogen Idec (Nasdaq:BIIB) has been that the company was able to come to an agreement with Carl Icahn as it appointed one of his nominees to its board of directors in exchange for Icahn's agreement to support two of the company's own nominees. The agreement avoided a proxy battle, but Icahn's quest to sell the company is far from over.

Biogen Idec is also expected to report a modest uptick in revenue and earnings when it reports its results on Monday. Shareholders will be expecting a big quarter from Tysabri, Biogen Idec's multiple sclerosis therapy. In Q4, Tysabri sales soared 32% on a year-over-year basis.

Chippin' Away
On Tuesday, chipmaker Intel (Nasdaq:INTC) is slated to report its Q1 earnings. Analysts are calling for the company to check in with EPS of 37 cents, versus 11 cents in the prior year's quarter. Revenue is expected to rise 37%.

In Q4, reported EPS of 40 cents versus 4 cents in its 2008 Q4. Revenue was up 28% on a year-over-year basis as the company achieved record gross margins. Shares of Intel are near a 52-week high, and are up 45% from a year ago.

The Bottom Line
The recent run that the equity markets have had has certainly lead investor's to question its authenticity. The earnings that Alcoa, Biogen Idec and Intel report could go a long way to support the sustainability of this momentum. Assuming that these companies are able meet estimates or guide higher, the earnings season should be off to a brisk pace. (For more, see Strategies For Quarterly Earnings Season.)


Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!