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Why Is Allegheny Technologies (ATI) Up 16.5% Since Last Earnings Report?
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It has been about a month since the last earnings report for Allegheny Technologies (ATI - Free Report) . Shares have added about 16.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Allegheny Technologies due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Allegheny’s Earnings and Revenues Beat Estimates in Q4
Allegheny recorded loss of $29.8 million or 23 cents per share in fourth-quarter 2021 versus a loss of $1,121 million or $8.85 per share in the prior-year quarter.
Barring one-time items, adjusted earnings were 25 cents per share, which beat the Zacks Consensus Estimate of 11 cents.
The company delivered revenues of $765.4 million in the quarter, up 16.3% year over year. The figure surpassed the Zacks Consensus Estimate of $734 million.
Segment Highlights
In the fourth quarter, revenues in the High-Performance Materials & Components (“HPMC”) segment totaled $313.6 million, up 41.1% year over year. The sales growth reflects higher sales across nearly all end markets, led by commercial jet engines. EBITDA in the unit was $60.7 million compared with $7.5 million in the prior-year quarter. It reflects an improved product mix related to higher aero engine market sales and benefits from higher operating levels.
The Advanced Alloys & Solutions (AA&S) segment’s sales rose 4% year over year to $451.8 million, owing to higher selling prices. EBITDA in the division totaled $49.2 million compared with $29.5 million in the prior-year quarter. Richer product mix, including a smaller proportion of standard stainless products and gains from 2020 cost reductions have improved operating margin.
FY21 Results
Loss (as reported) for full-year 2021 was 30 cents per share against loss of $12.43 per share a year ago. Net sales fell 6% year over year to roughly $2.8 billion.
Financial Position
Allegheny ended 2021 with cash and cash equivalents of $687.7 million, up 6.5% year over year. Long-term debt increased 10.4% year over year at $1,711.6 million.
Cash provided by operating activities in 2021 was $16.1 million.
Outlook
Allegheny projects strong year-over-year revenue and earnings growth in the first quarter primarily driven by the ongoing commercial aerospace recovery and its business transformation efforts. It expects normal seasonal cash outflows, including deploying working capital to meet higher demand requirements.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 90.91% due to these changes.
VGM Scores
Currently, Allegheny Technologies has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Allegheny Technologies has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Why Is Allegheny Technologies (ATI) Up 16.5% Since Last Earnings Report?
It has been about a month since the last earnings report for Allegheny Technologies (ATI - Free Report) . Shares have added about 16.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Allegheny Technologies due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Allegheny’s Earnings and Revenues Beat Estimates in Q4
Allegheny recorded loss of $29.8 million or 23 cents per share in fourth-quarter 2021 versus a loss of $1,121 million or $8.85 per share in the prior-year quarter.
Barring one-time items, adjusted earnings were 25 cents per share, which beat the Zacks Consensus Estimate of 11 cents.
The company delivered revenues of $765.4 million in the quarter, up 16.3% year over year. The figure surpassed the Zacks Consensus Estimate of $734 million.
Segment Highlights
In the fourth quarter, revenues in the High-Performance Materials & Components (“HPMC”) segment totaled $313.6 million, up 41.1% year over year. The sales growth reflects higher sales across nearly all end markets, led by commercial jet engines. EBITDA in the unit was $60.7 million compared with $7.5 million in the prior-year quarter. It reflects an improved product mix related to higher aero engine market sales and benefits from higher operating levels.
The Advanced Alloys & Solutions (AA&S) segment’s sales rose 4% year over year to $451.8 million, owing to higher selling prices. EBITDA in the division totaled $49.2 million compared with $29.5 million in the prior-year quarter. Richer product mix, including a smaller proportion of standard stainless products and gains from 2020 cost reductions have improved operating margin.
FY21 Results
Loss (as reported) for full-year 2021 was 30 cents per share against loss of $12.43 per share a year ago. Net sales fell 6% year over year to roughly $2.8 billion.
Financial Position
Allegheny ended 2021 with cash and cash equivalents of $687.7 million, up 6.5% year over year. Long-term debt increased 10.4% year over year at $1,711.6 million.
Cash provided by operating activities in 2021 was $16.1 million.
Outlook
Allegheny projects strong year-over-year revenue and earnings growth in the first quarter primarily driven by the ongoing commercial aerospace recovery and its business transformation efforts. It expects normal seasonal cash outflows, including deploying working capital to meet higher demand requirements.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 90.91% due to these changes.
VGM Scores
Currently, Allegheny Technologies has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Allegheny Technologies has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.