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Allegheny (ATI) Earnings and Revenues Beat Estimates in Q4
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Allegheny Technologies Incorporated (ATI - Free Report) recorded a loss of $29.8 million or 23 cents per share in fourth-quarter 2021 compared with a loss of $1,121 million or $8.85 per share in the prior-year quarter.
Barring one-time items, adjusted earnings were 25 cents per share, beating the Zacks Consensus Estimate of 11 cents.
The company delivered revenues of $765.4 million in the quarter, up 16.3% year over year. The figure surpassed the Zacks Consensus Estimate of $734 million.
Allegheny Technologies Incorporated Price, Consensus and EPS Surprise
In the fourth quarter, revenues in the High-Performance Materials & Components (“HPMC”) segment totaled $313.6 million, up 41.1% year over year. The upside reflects higher sales across nearly all end markets, led by commercial jet engines. EBITDA in the unit was $60.7 million compared with $7.5 million in the prior-year quarter. It reflects an improved product mix related to higher aero engine market sales and benefits from higher operating levels.
The Advanced Alloys & Solutions (AA&S) segment’s sales rose 4% year over year to $451.8 million, owing to higher selling prices. EBITDA in the division totaled $49.2 million compared with $29.5 million in the prior-year quarter. Richer product mix, including a smaller proportion of standard stainless products, and gains from 2020 cost reductions have improved operating margin.
FY21 Results
Loss (as reported) for full-year 2021 was 30 cents per share compared with a loss of $12.43 per share a year ago. Net sales fell 6% year over year to roughly $2.8 billion.
Financial Position
Allegheny ended 2021 with cash and cash equivalents of $687.7 million, up 6.5% year over year. The long-term debt increased 10.4% year over year at $1,711.6 million.
Cash provided by operating activities in 2021 was $16.1 million.
Outlook
Allegheny projects strong year-over-year revenue and earnings growth in the first quarter, primarily driven by the ongoing commercial aerospace recovery and business transformation efforts. It expects normal seasonal cash outflows, including deploying working capital to meet higher demand requirements.
Price Performance
Shares of Allegheny have increased 19.3% in the past year compared with a 6.2% 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 Albemarle Corporation (ALB - Free Report) , Nutrien Ltd. (NTR - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Albemarle, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 51.5% for the current year. The Zacks Consensus Estimate for ALB's earnings for the current year has been revised 5.6% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 22.1%. ALB has rallied around 43% over a year.
Nutrien, sporting a Zacks Rank #1, has a projected earnings growth rate of 53.8% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 17.4% upward in the past 60 days.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters, while missing once. It has a trailing four-quarter earnings surprise of roughly 73.5%, on average. NTR has rallied around 41.4% in a year.
AdvanSix has a projected earnings growth rate of 7.4% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 5.3% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has surged 82.4% over a year. The company sports a Zacks Rank #1.
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Allegheny (ATI) Earnings and Revenues Beat Estimates in Q4
Allegheny Technologies Incorporated (ATI - Free Report) recorded a loss of $29.8 million or 23 cents per share in fourth-quarter 2021 compared with a loss of $1,121 million or $8.85 per share in the prior-year quarter.
Barring one-time items, adjusted earnings were 25 cents per share, beating the Zacks Consensus Estimate of 11 cents.
The company delivered revenues of $765.4 million in the quarter, up 16.3% year over year. The figure surpassed the Zacks Consensus Estimate of $734 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 fourth quarter, revenues in the High-Performance Materials & Components (“HPMC”) segment totaled $313.6 million, up 41.1% year over year. The upside reflects higher sales across nearly all end markets, led by commercial jet engines. EBITDA in the unit was $60.7 million compared with $7.5 million in the prior-year quarter. It reflects an improved product mix related to higher aero engine market sales and benefits from higher operating levels.
The Advanced Alloys & Solutions (AA&S) segment’s sales rose 4% year over year to $451.8 million, owing to higher selling prices. EBITDA in the division totaled $49.2 million compared with $29.5 million in the prior-year quarter. Richer product mix, including a smaller proportion of standard stainless products, and gains from 2020 cost reductions have improved operating margin.
FY21 Results
Loss (as reported) for full-year 2021 was 30 cents per share compared with a loss of $12.43 per share a year ago. Net sales fell 6% year over year to roughly $2.8 billion.
Financial Position
Allegheny ended 2021 with cash and cash equivalents of $687.7 million, up 6.5% year over year. The long-term debt increased 10.4% year over year at $1,711.6 million.
Cash provided by operating activities in 2021 was $16.1 million.
Outlook
Allegheny projects strong year-over-year revenue and earnings growth in the first quarter, primarily driven by the ongoing commercial aerospace recovery and business transformation efforts. It expects normal seasonal cash outflows, including deploying working capital to meet higher demand requirements.
Price Performance
Shares of Allegheny have increased 19.3% in the past year compared with a 6.2% rise of the industry.
Zacks Rank & Key Picks
Allegheny currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space are Albemarle Corporation (ALB - Free Report) , Nutrien Ltd. (NTR - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Albemarle, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 51.5% for the current year. The Zacks Consensus Estimate for ALB's earnings for the current year has been revised 5.6% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 22.1%. ALB has rallied around 43% over a year.
Nutrien, sporting a Zacks Rank #1, has a projected earnings growth rate of 53.8% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 17.4% upward in the past 60 days.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters, while missing once. It has a trailing four-quarter earnings surprise of roughly 73.5%, on average. NTR has rallied around 41.4% in a year.
AdvanSix has a projected earnings growth rate of 7.4% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 5.3% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has surged 82.4% over a year. The company sports a Zacks Rank #1.