We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Allegheny (ATI) Q2 Earnings and Revenues Surpass Estimates
Read MoreHide Full Article
Allegheny Technologies Incorporated (ATI - Free Report) recorded net loss of $49.2 million or 39 cents per share in second-quarter 2021 compared with a loss of $422.6 million or $3.34 per share in the prior-year quarter.
Barring one-time items, adjusted loss was 12 cents per share, narrower than the Zacks Consensus Estimate of a loss of 20 cents.
The company delivered revenues of $616.2 million in the quarter, down 20% year over year. Nevertheless, the figure surpassed the Zacks Consensus Estimate of $582 million.
Allegheny Technologies Incorporated Price, Consensus and EPS Surprise
In the second quarter, revenues in the High-Performance Materials & Components (“HPMC”) segment totaled $300.6 million, flat year over year. The company stated that sales figure reflected lower commercial aerospace sales driven by pandemic, offset by higher government defense and energy markets sales. EBITDA in the unit was $37.2 million compared with $28.7 million in the prior-year quarter. Higher production volumes and cost-cutting actions aided operating margins.
The Advanced Alloys & Solutions (“AA&S”) segment’s sales fell 33.3% year over year to $315.6 million, owing to impacts from the strike as well as the exit from the standard stainless sheet market. EBITDA in the division totalled $36 million compared with $33.4 million in the prior-year quarter. Richer product mix, including a smaller proportion of standard stainless products, benefit from raw material price changes and gains from 2020 cost reductions have improved operating margin.
Financial Position
Allegheny ended the quarter with cash and cash equivalents of $472.5 million, down 12.4% year over year. Long-term debt increased 5.6% year over year at $1,602.2 million.
Cash used in operating activities for the first half of 2021 was $102.6 million.
Outlook
Allegheny expects continued recovery in its jet engine market in the third quarter. The recovery is expected to be driven by increasing narrow body aircraft production rates as well as ongoing strength in its energy and electronics end markets.
It anticipates lingering effects on its SRP business, with production levels returning to pre-strike levels across the balance of the third quarter. However, despite this challenge in the near term, ongoing global economic recovery is gradually expanding and providing optimism for its most impactful end markets, Allegheny noted.
Price Performance
Shares of Allegheny have surged 117.6% in the past year compared with 83.8% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Allegheny currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space are Nucor Corporation (NUE - Free Report) , Dow Inc. (DOW - Free Report) and Cabot Corporation (CBT - Free Report) .
Nucor has a projected earnings growth rate of around 444.9% for the current year. The company’s shares have surged 145.3% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dow has an expected earnings growth rate of around 403.01% for the current year. The company’s shares have gained 48.2% in the past year. It currently carries a Zacks Rank #2.
Cabot has an expected earnings growth rate of around 137.5% for the current fiscal. The company’s shares have surged 43.4% in the past year. It currently holds a Zacks Rank #2.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Allegheny (ATI) Q2 Earnings and Revenues Surpass Estimates
Allegheny Technologies Incorporated (ATI - Free Report) recorded net loss of $49.2 million or 39 cents per share in second-quarter 2021 compared with a loss of $422.6 million or $3.34 per share in the prior-year quarter.
Barring one-time items, adjusted loss was 12 cents per share, narrower than the Zacks Consensus Estimate of a loss of 20 cents.
The company delivered revenues of $616.2 million in the quarter, down 20% year over year. Nevertheless, the figure surpassed the Zacks Consensus Estimate of $582 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 second quarter, revenues in the High-Performance Materials & Components (“HPMC”) segment totaled $300.6 million, flat year over year. The company stated that sales figure reflected lower commercial aerospace sales driven by pandemic, offset by higher government defense and energy markets sales. EBITDA in the unit was $37.2 million compared with $28.7 million in the prior-year quarter. Higher production volumes and cost-cutting actions aided operating margins.
The Advanced Alloys & Solutions (“AA&S”) segment’s sales fell 33.3% year over year to $315.6 million, owing to impacts from the strike as well as the exit from the standard stainless sheet market. EBITDA in the division totalled $36 million compared with $33.4 million in the prior-year quarter. Richer product mix, including a smaller proportion of standard stainless products, benefit from raw material price changes and gains from 2020 cost reductions have improved operating margin.
Financial Position
Allegheny ended the quarter with cash and cash equivalents of $472.5 million, down 12.4% year over year. Long-term debt increased 5.6% year over year at $1,602.2 million.
Cash used in operating activities for the first half of 2021 was $102.6 million.
Outlook
Allegheny expects continued recovery in its jet engine market in the third quarter. The recovery is expected to be driven by increasing narrow body aircraft production rates as well as ongoing strength in its energy and electronics end markets.
It anticipates lingering effects on its SRP business, with production levels returning to pre-strike levels across the balance of the third quarter. However, despite this challenge in the near term, ongoing global economic recovery is gradually expanding and providing optimism for its most impactful end markets, Allegheny noted.
Price Performance
Shares of Allegheny have surged 117.6% in the past year compared with 83.8% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Allegheny currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space are Nucor Corporation (NUE - Free Report) , Dow Inc. (DOW - Free Report) and Cabot Corporation (CBT - Free Report) .
Nucor has a projected earnings growth rate of around 444.9% for the current year. The company’s shares have surged 145.3% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dow has an expected earnings growth rate of around 403.01% for the current year. The company’s shares have gained 48.2% in the past year. It currently carries a Zacks Rank #2.
Cabot has an expected earnings growth rate of around 137.5% for the current fiscal. The company’s shares have surged 43.4% in the past year. It currently holds a Zacks Rank #2.