Is Allegheny (ATI) Poised for a Beat This Earnings Season?

Zacks Equity Research Published on January 19, 2018

Allegheny Technologies Incorporated (ATI - Free Report) is scheduled to release fourth-quarter 2017 results before the market opens on Jan 23.

The company recorded adjusted loss of 7 cents per share in the previous quarter, which was in line with the Zacks Consensus Estimate. However, revenues increased 12.8% year over year to $869.1 million, surpassing the Zacks Consensus Estimate of $865.1 million.

Alleghany outpaced the Zacks Consensus Estimate in three of the trailing four quarters, with an average positive surprise of 34.4%.

Let’s see how things have shaped up for the forthcoming announcement.

Allegheny Technologies Incorporated Price, Consensus and EPS Surprise

Earnings Whisper

Our proven model conclusively shows that Allegheny is likely to beat estimates this quarter because it has the right combination of two key ingredients.

Zacks ESP: Allegheny has an Earnings ESP of +11.11%. This is because the Most Accurate estimate is 16 cents while the Zacks Consensus Estimate is pegged at 14 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Allegheny carries a Zacks Rank #3 (Hold), which when combined with a positive ESP, makes us confident of an earnings beat. Note that stocks with — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 — have significantly higher chance of beating earnings estimates.

Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.

Stocks With Favorable Combination

Here are some companies in the basic materials space, which according to our model also have the right combination of elements to post earnings beat this quarter:

Huntsman Corporation (HUN - Free Report) has an Earnings ESP of +5.47% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Iamgold Corporation (IAG - Free Report) has an Earnings ESP of +28.57% and a Zacks Rank #1.

LyondellBasell Industries NV (LYB - Free Report) has an Earnings ESP of +0.55% and a Zacks Rank #2.

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