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ATI Inc (ATI) to Report Q2 Earnings: What's in the Cards?

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ATI Inc. (ATI - Free Report) is scheduled to report second-quarter 2024 earnings on Aug 6, before the opening bell.

ATI surpassed the Zacks Consensus Estimate in all of the last four quarters, the average earnings surprise being nearly 8.3%. It delivered a positive earnings surprise of around 17.1% in the last reported quarter.

Let’s see how things are shaping up for this announcement. 

Zacks Model

Our proven model predicts earnings beat for ATI this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.

Earnings ESP: Earnings ESP for ATI is +3.50%. The Zacks Consensus Estimate for the second quarter is currently pegged at 58 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: ATI currently carries a Zacks Rank #3.

What Do the Estimates Say?

The Zacks Consensus Estimate for second-quarter revenues is projected at $1,104 million, suggesting a nearly 5.5% increase from the previous year’s levels.

For the High Performance Materials & Components (HPMC) segment, the consensus estimate is set at $588.9 million, indicating a 12% year-over-year growth.

The same for the Advanced Alloys & Solutions (AA&S) segment is pegged at $513.6 million, suggesting a 1% drop from the previous year's figures.

Factors to Note

ATI is expected to have benefited from strong demand for its products in the second quarter, especially in the aerospace and defense market. Steady demand in key markets, expanding production capacity, improved operational performance and a healthy pricing environment are likely to have aided its performance. For the second quarter, ATI anticipates substantial increases in earnings and adjusted EBITDA, thanks to growth in core end markets, improved production levels following recent outages and stable industrial demand. This momentum is expected to continue throughout the year.

The company is capitalizing on increasing melt rates and new billet forge press capacity, setting the stage for strong sequential growth and segment EBITDA margins in the HPMC unit, which are projected to surpass 20% in the second quarter. The AA&S segment is expected to have benefited from continued strong demand and increased shipments of titanium airframe materials in the June quarter.

ATI Inc. Price and EPS Surprise

 

ATI Inc. Price and EPS Surprise

ATI Inc. price-eps-surprise | ATI Inc. Quote

 

Stocks That Warrant a Look

Here are some companies in the basic materials space you may want to consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter.

Barrick Gold Corporation (GOLD - Free Report) , which is slated to release earnings on Aug 12, has an Earnings ESP of +3.29% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks Rank #1 stocks here.

The consensus estimate for GOLD’s second-quarter earnings is currently pegged at 26 cents.

Pan American Silver Corp. (PAAS - Free Report) , slated to release earnings on Aug 7, has an Earnings ESP of +13.43% and carries a Zacks Rank #3 at present.

The Zacks Consensus Estimate for PAAS’s second-quarter earnings is pegged at 13 cents.

Royal Gold, Inc. (RGLD - Free Report) , slated to release earnings on Aug 7, has an Earnings ESP of +2.99% and carries a Zacks Rank #2 at present.

The consensus mark for RGLD’s second-quarter earnings is currently pegged at $1.17.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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