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Allegheny (ATI) Earnings and Revenues Beat Estimates in Q1
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Allegheny Technologies Incorporated (ATI - Free Report) recorded a net income of $30.9 million or 23 cents per share in first-quarter 2022 versus a loss of $7.9 million or 6 cents per share in the prior-year quarter.
Barring one-time items, adjusted earnings were 40 cents per share, beating the Zacks Consensus Estimate of 22 cents.
The company delivered revenues of $834.1 million in the quarter, up 20% year over year. The figure surpassed the Zacks Consensus Estimate of $750.8 million.
Allegheny Technologies Incorporated Price, Consensus and EPS Surprise
In the first quarter, revenues in the High-Performance Materials & Components (“HPMC”) segment totaled $341.6 million, up 41.8% year over year. The sales growth reflects higher sales across nearly all end markets, led by commercial jet engines. EBITDA in the unit was $68.1 million compared with $24.6 million in the prior-year quarter. Higher raw material costs outpaced quarterly index pricing mechanisms for mill product sales, leading to margin compression compared with the prior periods.
The Advanced Alloys & Solutions (AA&S) segment’s sales rose 9% year over year to $492.5 million, owing to higher selling prices. EBITDA in the division totaled $75.3 million compared with $49.7 million in the prior-year quarter. The results were driven by a stronger mix of nickel-alloy mill products.
Financial Position
Allegheny ended the quarter with cash and cash equivalents of $316.7 million, down 53.9% sequentially. Long-term debt was flat sequentially at $1,707.4 million.
Cash used in operating activities in the first quarter was $217.2 million.
Outlook
Allegheny projects continued growth in its most significant end markets. The company’s lean cost structures will help it improve earnings and margins from the year-ago levels amid the prevailing environment. It expects to continue improving inventory efficiency, balanced with ensuring an adequate supply of input materials to achieve growth
Price Performance
Shares of Allegheny have increased 12.2% in the past year compared with a 7.8% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Allegheny currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the basic materials space are Nutrien Ltd. (NTR - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Cabot Corporation (CBT - Free Report) .
Nutrien has a projected earnings growth rate of 157.9% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 36.6% upward in the past 60 days.
Nutrien’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, while missing once. It delivered a trailing four-quarter earnings surprise of roughly 5.9%, on average. NTR has rallied around 68.1% in a year and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
AdvanSix has a projected earnings growth rate of 63.4% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 39.4% upward in the past 60 days.
AdvanSix’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 23.6%. ASIX has surged 50.1% in a year. The company flaunts a Zacks Rank #1.
Cabot, currently carrying a Zacks Rank #2 (Buy), has an expected earnings growth rate of 17.5% for the current year. The Zacks Consensus Estimate for CBT's earnings for the current year has been revised 1.7% upward in the past 60 days.
Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has rallied around 8.8% over a year.
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Allegheny (ATI) Earnings and Revenues Beat Estimates in Q1
Allegheny Technologies Incorporated (ATI - Free Report) recorded a net income of $30.9 million or 23 cents per share in first-quarter 2022 versus a loss of $7.9 million or 6 cents per share in the prior-year quarter.
Barring one-time items, adjusted earnings were 40 cents per share, beating the Zacks Consensus Estimate of 22 cents.
The company delivered revenues of $834.1 million in the quarter, up 20% year over year. The figure surpassed the Zacks Consensus Estimate of $750.8 million.
Allegheny Technologies Incorporated Price, Consensus and EPS Surprise
Allegheny Technologies Incorporated price-consensus-eps-surprise-chart | Allegheny Technologies Incorporated Quote
Segment Highlights
In the first quarter, revenues in the High-Performance Materials & Components (“HPMC”) segment totaled $341.6 million, up 41.8% year over year. The sales growth reflects higher sales across nearly all end markets, led by commercial jet engines. EBITDA in the unit was $68.1 million compared with $24.6 million in the prior-year quarter. Higher raw material costs outpaced quarterly index pricing mechanisms for mill product sales, leading to margin compression compared with the prior periods.
The Advanced Alloys & Solutions (AA&S) segment’s sales rose 9% year over year to $492.5 million, owing to higher selling prices. EBITDA in the division totaled $75.3 million compared with $49.7 million in the prior-year quarter. The results were driven by a stronger mix of nickel-alloy mill products.
Financial Position
Allegheny ended the quarter with cash and cash equivalents of $316.7 million, down 53.9% sequentially. Long-term debt was flat sequentially at $1,707.4 million.
Cash used in operating activities in the first quarter was $217.2 million.
Outlook
Allegheny projects continued growth in its most significant end markets. The company’s lean cost structures will help it improve earnings and margins from the year-ago levels amid the prevailing environment. It expects to continue improving inventory efficiency, balanced with ensuring an adequate supply of input materials to achieve growth
Price Performance
Shares of Allegheny have increased 12.2% in the past year compared with a 7.8% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Allegheny currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the basic materials space are Nutrien Ltd. (NTR - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Cabot Corporation (CBT - Free Report) .
Nutrien has a projected earnings growth rate of 157.9% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 36.6% upward in the past 60 days.
Nutrien’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, while missing once. It delivered a trailing four-quarter earnings surprise of roughly 5.9%, on average. NTR has rallied around 68.1% in a year and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
AdvanSix has a projected earnings growth rate of 63.4% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 39.4% upward in the past 60 days.
AdvanSix’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 23.6%. ASIX has surged 50.1% in a year. The company flaunts a Zacks Rank #1.
Cabot, currently carrying a Zacks Rank #2 (Buy), has an expected earnings growth rate of 17.5% for the current year. The Zacks Consensus Estimate for CBT's earnings for the current year has been revised 1.7% upward in the past 60 days.
Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has rallied around 8.8% over a year.