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Allegheny (ATI) Q2 Earnings and Sales Beat Estimate
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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. Low 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 second-quarter release.
Estimate Trend & Surprise History
Investors should note that the Zacks Consensus Estimate for Allegheny for the second quarter has 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 16.08%.
Earnings
Allegheny’s earnings were 9 cents per share for the quarter, surpassing the Zacks Consensus Estimate of 7 cents.
Allegheny Technologies Incorporated Price and EPS Surprise
Allegheny reported revenues of $880.2 million, beating the Zacks Consensus Estimate of $876.1 million.
Key Stats/Developments to Note
Moving ahead, Allegheny expects its High Performance Materials & Component (HPMC) unit to maintain robust performance in the second half of 2017, especially in the commercial aerospace. Further, the company expects the unit to continue to deliver a low-double-digit level of operating margin.
The Flat Rolled Products (FRP) unit is expected to continue to witness operational improvements in the third-quarter on the back of improved product mix. However, the company cautiously noted that the quarter could be negatively impacted by the recent fall in raw material prices, especially nickel and ferrochrome, which is expected to considerably decrease profit margins due to out-of-phase raw material surcharges. The condition could persist until raw materials prices stabilize. The company expects the FRP segment to report a loss in the third quarter and to be modestly profitable for the full year. The company projects average capital expenditure of not more than $100 million annually for the next several years.
Zacks Rank
Currently, Allegheny has a Zacks Rank #4 (Sell), but that could change following the company’s earnings report which was just released.
Market Reaction
Allegheny’s shares were up 1.5% 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!
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From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential.
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Allegheny (ATI) Q2 Earnings and Sales Beat Estimate
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. Low 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 second-quarter release.
Estimate Trend & Surprise History
Investors should note that the Zacks Consensus Estimate for Allegheny for the second quarter has 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 16.08%.
Earnings
Allegheny’s earnings were 9 cents per share for the quarter, surpassing the Zacks Consensus Estimate of 7 cents.
Allegheny Technologies Incorporated Price and EPS Surprise
Allegheny Technologies Incorporated Price and EPS Surprise | Allegheny Technologies Incorporated Quote
Revenues
Allegheny reported revenues of $880.2 million, beating the Zacks Consensus Estimate of $876.1 million.
Key Stats/Developments to Note
Moving ahead, Allegheny expects its High Performance Materials & Component (HPMC) unit to maintain robust performance in the second half of 2017, especially in the commercial aerospace. Further, the company expects the unit to continue to deliver a low-double-digit level of operating margin.
The Flat Rolled Products (FRP) unit is expected to continue to witness operational improvements in the third-quarter on the back of improved product mix. However, the company cautiously noted that the quarter could be negatively impacted by the recent fall in raw material prices, especially nickel and ferrochrome, which is expected to considerably decrease profit margins due to out-of-phase raw material surcharges. The condition could persist until raw materials prices stabilize. The company expects the FRP segment to report a loss in the third quarter and to be modestly profitable for the full year. The company projects average capital expenditure of not more than $100 million annually for the next several years.
Zacks Rank
Currently, Allegheny has a Zacks Rank #4 (Sell), but that could change following the company’s earnings report which was just released.
Market Reaction
Allegheny’s shares were up 1.5% 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: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential.
See these stocks now>>