Back to top

Image: Bigstock

ATI's Earnings In Line With Estimates in Q4, Revenues Beat

Read MoreHide Full Article

ATI Inc. (ATI - Free Report) reported earnings of $76.9 million or 53 cents per share in the fourth quarter of 2022 against a loss of $29.8 million or 23 cents per share in the year-ago quarter. Earnings per share matched the Zacks Consensus Estimate.

The company’s net sales in the fourth quarter were $1,010.4 million, beating the Zacks Consensus Estimate of $1,002.3 million. Net sales increased around 32% from $765.4 million in the prior-year quarter.

The top line was driven by strong demand in the company’s core markets, which the company could meet in the fourth quarter. Solid demand in ATI’s aerospace and defense markets aided this growth.

 

ATI Inc. Price, Consensus and EPS Surprise

ATI Inc. Price, Consensus and EPS Surprise

ATI Inc. price-consensus-eps-surprise-chart | ATI Inc. Quote

Segment Highlights

ATI’s High-performance Materials & Components (HPMC) segment reported sales amounting to $445.9 million, which was up 42.2% from the prior-year quarter due to a rise in revenues in the aerospace and defense markets. EBITDA in the unit was $81.8 million compared with $60.7 million in the prior-year quarter. It reflects a rise in contents on the next-generation platforms.

The Advanced Alloys & Solutions (AA&S) segment’s sales rose 25.2% year over year to $564.5 million due to strength in aerospace, defense and energy markets. These were offset by a slump in demand due to recession in general industrial end markets and lower demand in its Asia precision rolled strip business due to COVID-19. EBITDA in the division totaled $72.1 million compared with $49.2 million in the prior-year quarter. EBITDA in this segment expanded due to stronger demand for value-add products that includes nickel-based alloys and titanium mill products.

FY22 Results

Adjusted earnings for full-year 2022 were $1.99 per share compared with 13 cents a year ago. Net sales rose around 37% to $3,836 million.

Financials

ATI ended 2022 with cash and cash equivalents of $584 million, down 15.1% year over year. Long-term debt decreased 0.31% to $1,706.3 million.

Outlook

ATI projects strong performance moving ahead, primarily driven by the ongoing strength seen in the company’s key markets and business transformation efforts. The company remains focused on strategically investing its funds along with efficient capital allocation to build up capacities to meet unprecedented demand going forward. It remains on track to achieve its long-term objectives.

Price Performance

Shares of ATI have surged 74.8% in the past year compared with a 64.6% rise of the industry.

Zacks Investment Research

Image Source: Zacks Investment Research

Zacks Rank & Key Picks

ATI currently sports a Zacks Rank #1 (Strong Buy).

Other top-ranked stocks to consider in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Cal-Maine Foods, Inc. (CALM - Free Report) and Clearwater Paper Corporation (CLW - Free Report) . CALM and CLW both sport a Zacks Rank #1, while CRS carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.  

CRS’ shares have gained 73.9% in the past year. The company has an earnings growth rate of 203.8% for the current year. The firm outpaced Zacks Consensus Estimate in all of the last four quarters. It delivered a trailing four-quarter earnings surprise of 33.6% on average.

Cal-Maine’s shares have gained 29.9% in the past year. The company has an earnings growth rate of 417.7% for the current year. The Zacks Consensus Estimate for CALM’s current-year earnings has been revised 73.8% upward in the past 60 days.

The company topped Zacks Consensus Estimate in three of the last fourth quarters. It delivered a trailing four-quarter earnings surprise of 15.3% on average.

CLW’s shares have gained 29.7% in the past year. The company has an earnings growth rate of 278.6% for the current year.

Clearwater Paper beat Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 13% on average.








 

Published in