Back to top

Image: Bigstock

Allegheny (ATI) Q4 Loss Narrower Than Expected, Sales Trail

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 should benefit 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 fourth-quarter release.

Estimate Trend & Surprise History

Investors should note that the Zacks Consensus Estimate for Allegheny for the fourth quarter has been stable over the past month. The company has beaten the Zacks Consensus Estimate in two of the trailing four quarters while missing in two, with an average negative surprise of 21.67%.

Earnings

Allegheny’s adjusted loss was 4 cents per share for the quarter, narrower than the Zacks Consensus Estimate of a loss of 11 cents.

Revenues

Allegheny reported revenues of $796.1 million, missing the Zacks Consensus Estimate of $817 million.

Key Stats/Developments to Note

Management will remain focused on generating cash in 2017. The company has been concentrating on restructuring initiatives for the same in 2016. For full year 2017, the company projects capital expenditure of around $125 million, including around $40 million for the expansion at its Chinese joint venture. Beyond 2017, capital expenditure is not expected to increase more than $100 million for next several years.

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 4.8% 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!

Zacks' Top 10 Stocks for 2017

In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?

Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>


See More Zacks Research for These Tickers


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


ATI Inc. (ATI) - free report >>

Published in