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Allegheny's (ATI) Earnings and Sales Beat Estimates in Q3
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Allegheny Technologies Inc. (ATI - Free Report) slipped to a net loss of $50.1 million or 40 cents per share in third-quarter 2020 from net income of $111 million or 78 cents per share in the prior-year quarter.
Excluding one-time items, adjusted loss per share was 38 cents, narrower than the Zacks Consensus Estimate of a loss of 58 cents.
The company delivered revenues of $598 million in the quarter, down 41.3% year over year. Nevertheless, the figure surpassed the Zacks Consensus Estimate of $588.9 million.
Allegheny Technologies Incorporated Price, Consensus and EPS Surprise
In the third quarter, revenues in the High-Performance Materials & Components (“HPMC”) segment declined 51% year over year to $221.3 million. The company stated that 78% of unit sales were attributable to the aerospace and defense markets. Sales of next-generation jet engine products contributed 19% to total HPMC jet engine product sales. Operating loss in the unit was $2.7 million against operating profits of $68.4 million in the prior-year quarter. Reduced asset utilization rates and lower overall demand affected operating margins.
The Advanced Alloys & Solutions (“AA&S”) segment’s sales fell 34% year over year to $376.7 million. Total sales to all energy markets declined 42% year over year. Operating loss in the division totaled $4.1 million against operating profits of $30.8 million in the prior-year quarter.
Financial Position
Allegheny ended the third quarter with cash and cash equivalents of $572.2 million, up 11.9% year over year. Long-term debt fell 0.8% year over year at $1,529 million.
Cash provided by operating activities for the first nine months of 2020 was $45 million.
Outlook
Allegheny expects fourth-quarter results to be affected by the coronavirus pandemic and its impact on commercial aerospace market, which is its largest end-market. It anticipates modest improvements in commercial aerospace in 2021. The company proactively seeking opportunities to turn itself into a more-streamlined and profitable aerospace and defense supplier as the aerospace industry recovers.
Price Performance
Shares of Allegheny have lost 50.8% in the past year compared with the industry’s 60.3% decline.
Zacks Rank & Other Key Picks
Allegheny currently carries a Zacks Rank #2 (Buy).
Agnico Eagle has an expected earnings growth rate of 102.1% for 2020. Its shares have returned 31.4% in the past year.
Barrick has an expected earnings growth rate of 100% for 2020. The company’s shares have surged 53.9% in the past year.
B2Gold has an expected earnings growth rate of 250% for 2020. The company’s shares have gained 83.1% in the past year.
Have You Seen Zacks’ 2020 Election Stock Report?
The upcoming election could be a massive buying opportunity for savvy investors. Trillions of dollars will shift into new market sectors after the election. The question is, which sectors will soar for each candidate? Zacks has put together a new special report to help readers like you target big profits.
The 2020 Election Stock Report reveals specific stocks you’ll want to own immediately after the results are announced – 6 if Trump wins, 6 if Biden wins. Past election reports have led investors to gains of +71%, +83%, even +185% in the following months. This year’s picks could be even more lucrative.
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Allegheny's (ATI) Earnings and Sales Beat Estimates in Q3
Allegheny Technologies Inc. (ATI - Free Report) slipped to a net loss of $50.1 million or 40 cents per share in third-quarter 2020 from net income of $111 million or 78 cents per share in the prior-year quarter.
Excluding one-time items, adjusted loss per share was 38 cents, narrower than the Zacks Consensus Estimate of a loss of 58 cents.
The company delivered revenues of $598 million in the quarter, down 41.3% year over year. Nevertheless, the figure surpassed the Zacks Consensus Estimate of $588.9 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 third quarter, revenues in the High-Performance Materials & Components (“HPMC”) segment declined 51% year over year to $221.3 million. The company stated that 78% of unit sales were attributable to the aerospace and defense markets. Sales of next-generation jet engine products contributed 19% to total HPMC jet engine product sales. Operating loss in the unit was $2.7 million against operating profits of $68.4 million in the prior-year quarter. Reduced asset utilization rates and lower overall demand affected operating margins.
The Advanced Alloys & Solutions (“AA&S”) segment’s sales fell 34% year over year to $376.7 million. Total sales to all energy markets declined 42% year over year. Operating loss in the division totaled $4.1 million against operating profits of $30.8 million in the prior-year quarter.
Financial Position
Allegheny ended the third quarter with cash and cash equivalents of $572.2 million, up 11.9% year over year. Long-term debt fell 0.8% year over year at $1,529 million.
Cash provided by operating activities for the first nine months of 2020 was $45 million.
Outlook
Allegheny expects fourth-quarter results to be affected by the coronavirus pandemic and its impact on commercial aerospace market, which is its largest end-market. It anticipates modest improvements in commercial aerospace in 2021. The company proactively seeking opportunities to turn itself into a more-streamlined and profitable aerospace and defense supplier as the aerospace industry recovers.
Price Performance
Shares of Allegheny have lost 50.8% in the past year compared with the industry’s 60.3% decline.
Zacks Rank & Other Key Picks
Allegheny currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the basic materials space are Agnico Eagle Mines Limited (AEM - Free Report) , Barrick Gold Corporation (GOLD - Free Report) and B2Gold Corp (BTG - Free Report) . While Barrick and Agnico Eagle sport a Zacks Rank #1 (Strong Buy), B2Gold carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Agnico Eagle has an expected earnings growth rate of 102.1% for 2020. Its shares have returned 31.4% in the past year.
Barrick has an expected earnings growth rate of 100% for 2020. The company’s shares have surged 53.9% in the past year.
B2Gold has an expected earnings growth rate of 250% for 2020. The company’s shares have gained 83.1% in the past year.
Have You Seen Zacks’ 2020 Election Stock Report?
The upcoming election could be a massive buying opportunity for savvy investors. Trillions of dollars will shift into new market sectors after the election. The question is, which sectors will soar for each candidate? Zacks has put together a new special report to help readers like you target big profits.
The 2020 Election Stock Report reveals specific stocks you’ll want to own immediately after the results are announced – 6 if Trump wins, 6 if Biden wins. Past election reports have led investors to gains of +71%, +83%, even +185% in the following months. This year’s picks could be even more lucrative.
Check out Zacks’ 2020 Election Stock Report >>