Allegheny (ATI) Beats Q4 Earnings & Revenues Estimates

Allegheny Technologies Inc. ATI is a global producer of specialty materials, offering nickel-based alloys and superalloys, stainless steel, titanium alloys, specialty alloys, and zirconium and other related alloys.

Earnings

Allegheny reported adjusted earnings of 27 cents per share for the fourth quarter that beat the Zacks Consensus Estimate of 14 cents.

Revenues

Allegheny reported revenues of $910 million for the quarter, which surpassed the Zacks Consensus Estimate of $904.5 million.  

Allegheny Technologies Incorporated Price and Consensus

Allegheny Technologies Incorporated Price and Consensus | Allegheny Technologies Incorporated Quote

Estimate Trend & Surprise History

Investors should note that the Zacks Consensus Estimate for Allegheny for the fourth quarter remained stable over the past month. The company has beaten the Zacks Consensus Estimate in three of the trailing four quarters with an average positive surprise of 34.4%.

Key Stats/Developments to Note

Moving forward, Allegheny expects continued operating margin improvement and revenue growth in its High Performance Materials & Components (HPMC) unit in 2018 resulting from improved asset utilization and ongoing aerospace market demand growth. Allegheny also expects its Flat Rolled Products (FRP) unit to build on the operational improvements and product mix benefits attained last year and improve operating margins.

However, the company expects first-quarter 2018 results to be unfavorably impacted by roughly $10 million, on a sequential comparison basis, owing to reduced ferrochrome surcharges and required accounting changes on retirement benefit cost capitalization in inventory. The company sees the production ramp-up of the proposed joint venture with Tsingshan Stainless to meaningfully benefit FRP results in second-half 2018.

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 roughly 10% 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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