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ATI Inc (ATI) Q2 Earnings Beat, Revenues Miss Estimates
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ATI Inc. (ATI - Free Report) recorded a profit of $81.9 million or 58 cents per share in the second quarter of 2024 compared with the year-ago quarter's profit of $90.4 million or 62 cents.
ATI posted adjusted earnings of 60 cents, down 13% from the year-ago quarter’s figure of 69 cents. Adjusted earnings exceeded the Zacks Consensus Estimate of 58 cents.
The company’s net sales in the first quarter were $1,095.3 million, missing the Zacks Consensus Estimate of $1,104 million. Net sales were up around 5% year over year. ATI saw strong year-over-year sales growth in aerospace and defense.
High-Performance Materials & Components (HPMC) reported sales of $562 million in the second quarter, up 6.6% year over year. However, the figure fell short of the consensus estimate of $588.9 million. HPMC's segment EBITDA rose 4% year over year to $113.8 million. The rise in segment EBITDA can be attributed to increased volumes on higher-margin, latest-generation commercial aerospace platforms.
Advanced Alloys & Solutions (AA&S) recorded sales of $533.3 million, up approximately 3% from the prior year's figure of $518.9 million. The figure surpassed the consensus estimate of $513.6 million. The segment's EBITDA for the quarter was $87.5 million, up 18% year over year. Margins improved sequentially primarily driven by an improved sales mix, thanks to increased deliveries of titanium.
Financials
In second-quarter 2024, cash provided by operating activities amounted to $101 million compared with the previous year's figure of $68.1 million. The company's long-term debt was $1,854 million, up 9% from prior year’s levels.
Outlook
ATI's capabilities, long-term agreements and backlog enable the company to reaffirm its full-year outlook. Its clear strategy of leading in aerospace & defense and 'aero-like' markets keeps ATI on track to meet its 2024 guidance. The company expressed confidence in its ability to achieve the financial targets set for 2025 and 2027. ATI also highlighted the recent announcement of $4 billion in new sales commitments from the Farnborough International Airshow, predominantly for nickel alloys, which includes $550 million in revenues for 2027. This demonstrates that ATI remains on track to exceed $5 billion in revenues and $1 billion in adjusted EBITDA by 2027.
The Zacks Consensus Estimate for FNV’s current-year earnings is pegged at $3.27. The consensus estimate for FNV’s earnings has increased by 3% in the past 60 days. FNV beat the consensus estimate in the last four quarters, with the average earnings surprise being 10.5%. It is scheduled to release second-quarter results on Aug 13.
The Zacks Consensus Estimate for ASM’s current-year earnings is pegged at 5 cents, indicating a year-over-year rise of 25%. The consensus estimate for ASM’s earnings has increased by 25% in the past 60 days. The company’s shares have increased 32.4% in the past year. It is slated to report second-quarter results on Aug 13.
The Zacks Consensus Estimate for Barrick's current-year earnings is pegged at $1.16, indicating a rise of 38.1% from year-ago levels. The consensus estimate for GOLD’s earnings has increased 9% in the past 60 days. The company’s shares have increased 5.4% in the past year. GOLD will release second-quarter results on Aug 12.
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ATI Inc (ATI) Q2 Earnings Beat, Revenues Miss Estimates
ATI Inc. (ATI - Free Report) recorded a profit of $81.9 million or 58 cents per share in the second quarter of 2024 compared with the year-ago quarter's profit of $90.4 million or 62 cents.
ATI posted adjusted earnings of 60 cents, down 13% from the year-ago quarter’s figure of 69 cents. Adjusted earnings exceeded the Zacks Consensus Estimate of 58 cents.
The company’s net sales in the first quarter were $1,095.3 million, missing the Zacks Consensus Estimate of $1,104 million. Net sales were up around 5% year over year. ATI saw strong year-over-year sales growth in aerospace and defense.
ATI Inc. Price, Consensus and EPS Surprise
ATI Inc. price-consensus-eps-surprise-chart | ATI Inc. Quote
Segment Highlights
High-Performance Materials & Components (HPMC) reported sales of $562 million in the second quarter, up 6.6% year over year. However, the figure fell short of the consensus estimate of $588.9 million. HPMC's segment EBITDA rose 4% year over year to $113.8 million. The rise in segment EBITDA can be attributed to increased volumes on higher-margin, latest-generation commercial aerospace platforms.
Advanced Alloys & Solutions (AA&S) recorded sales of $533.3 million, up approximately 3% from the prior year's figure of $518.9 million. The figure surpassed the consensus estimate of $513.6 million. The segment's EBITDA for the quarter was $87.5 million, up 18% year over year. Margins improved sequentially primarily driven by an improved sales mix, thanks to increased deliveries of titanium.
Financials
In second-quarter 2024, cash provided by operating activities amounted to $101 million compared with the previous year's figure of $68.1 million. The company's long-term debt was $1,854 million, up 9% from prior year’s levels.
Outlook
ATI's capabilities, long-term agreements and backlog enable the company to reaffirm its full-year outlook. Its clear strategy of leading in aerospace & defense and 'aero-like' markets keeps ATI on track to meet its 2024 guidance. The company expressed confidence in its ability to achieve the financial targets set for 2025 and 2027. ATI also highlighted the recent announcement of $4 billion in new sales commitments from the Farnborough International Airshow, predominantly for nickel alloys, which includes $550 million in revenues for 2027. This demonstrates that ATI remains on track to exceed $5 billion in revenues and $1 billion in adjusted EBITDA by 2027.
Zacks Rank & Key Picks
ATI currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space areFranco-Nevada Corporation (FNV - Free Report) , Avino Silver & Gold Mines Ltd. (ASM - Free Report) and Barrick Gold Corporation (GOLD - Free Report) . Franco-Nevada and Avino Silversport a Zacks Rank #1 (Strong Buy), while Barrick carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FNV’s current-year earnings is pegged at $3.27. The consensus estimate for FNV’s earnings has increased by 3% in the past 60 days. FNV beat the consensus estimate in the last four quarters, with the average earnings surprise being 10.5%. It is scheduled to release second-quarter results on Aug 13.
The Zacks Consensus Estimate for ASM’s current-year earnings is pegged at 5 cents, indicating a year-over-year rise of 25%. The consensus estimate for ASM’s earnings has increased by 25% in the past 60 days. The company’s shares have increased 32.4% in the past year. It is slated to report second-quarter results on Aug 13.
The Zacks Consensus Estimate for Barrick's current-year earnings is pegged at $1.16, indicating a rise of 38.1% from year-ago levels. The consensus estimate for GOLD’s earnings has increased 9% in the past 60 days. The company’s shares have increased 5.4% in the past year. GOLD will release second-quarter results on Aug 12.