Back to top

Image: Bigstock

Allegheny (ATI) Q1 Earnings and Sales Beat Estimate

Read MoreHide Full Article

Allegheny Technologies Inc. (ATI - Free Report) is a diversified specialty materials producer operating through two segments, High Performance Materials and Components, and Flat-Rolled Products.

Allegheny is gaining from its diversified global growth markets and cost reduction measures. The company is also seeing healthy demand from aerospace OEMs. However, Allegheny is exposed to certain challenges (including pricing pressure) in its Flat Rolled Products segment. Lower oil prices are also affecting demand for its products in the oil and gas market.

Let’s have a quick look at this Pennsylvania-based company’s first-quarter release.

Estimate Trend & Surprise History

Investors should note that the Zacks Consensus Estimate for Allegheny for the first quarter has slightly decreased over the past month. The company has beaten the Zacks Consensus Estimate in three of the trailing four quarters while missing in one, with an average positive surprise of 5.14%.

Earnings

Allegheny’s earnings were 16 cents per share for the quarter, surpassing the Zacks Consensus Estimate of 11 cents.

Allegheny Technologies Incorporated Price and EPS Surprise

 

Revenues

Allegheny reported revenues of $865.9 million, beating the Zacks Consensus Estimate of $850.5 million.

Key Stats/Developments to Note

Allegheny expects its cost structure to continue to improve throughout 2017 as a result of its titanium operations restructuring actions taken last year.

The HPMC segment’s sales are expected to rise roughly 10% and operating profit as a percentage of sales is expected to be at low-double-digit in 2017. The company expects the FRP segment to return to profitability at a low-single digit operating profit level, as a percentage of sales, in 2017. The company continues to project capital expenditure of $125 million for full-year 2017.

Zacks Rank

Currently, Allegheny has a Zacks Rank #3 (Hold), but that could change following the company’s earnings report which was just released.

Market Reaction

Allegheny’s shares were up 3.3% in pre-market trading. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on Allegheny’s earnings report!

More Stock News: This Is Bigger than the iPhone!    

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

 

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


ATI Inc. (ATI) - free report >>

Published in