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ATI's (ATI) Earnings and Revenues Surpass Estimates in Q4
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ATI Inc. (ATI - Free Report) recorded a fourth-quarter 2023 profit of $145.7 million or 99 cents per share against the year-ago quarter's $193 million or $1.30.
ATI posted adjusted earnings of 64 cents per share, up 2% from the year-ago quarter figure of 63 cents. Adjusted earnings exceeded the Zacks Consensus Estimate of 62 cents.
The company’s net sales in the fourth quarter were $1,064 million, exceeding the Zacks Consensus Estimate of $1,030 million. Net sales increased around 5% from $1,010.4 million in the prior-year quarter. ATI saw strong year-over-year sales growth in aerospace and defense.
In the fourth quarter of 2023, the uptick in deliveries of titanium mill products was countered by a decrease in deliveries of nickel-based alloys. The strong incremental margins persist due to increased volumes in higher-margin next-generation commercial aerospace platforms.
High Performance Materials & Components (HPMC) recorded sales of $582.5 million in the fourth quarter, up 8% from sales recorded in the year-ago quarter. It also surpassed the Zacks Consensus Estimate of $550 million. In the reported quarter, HPMC's segment EBITDA surged 50% year over year to $125.1 million. Robust incremental margins were fueled by higher volumes, particularly on next-generation commercial aerospace platforms.
During the reported quarter, Advanced Alloys & Solutions (AA&S) recorded sales of $481.5 million, marking a decrease of approximately 14.7% from the previous year's figure of $564.5 million, which fell short of the Zacks Consensus Estimate of $509 million. While sales in defense products surged 25% compared to the prior year period, there was a decline in general industrial markets, contributing to the overall reduction. In terms of EBITDA, the AA&S segment reached $57.3 million for the quarter. Although there was an increase in titanium mill product deliveries, this was counterbalanced by reduced deliveries of nickel-based alloys.
FY23 Results
In 2023, full-year net earnings totaled $410.8 million, or $2.81 per share, whereas adjusted net earnings for the same period amounted to $373.4 million or $2.56 per share. This compares with full-year 2022 net earnings of $323.5 million, or $2.23 per share and adjusted net earnings of $351.2 million, or $2.41 per share. Revenues demonstrated a year-over-year increase of approximately 9%, rising from $3,836 million in 2022 to $4,173.7 million in 2023.
Financials
In 2023, cash provided by operating activities amounted to $85.9 million, reflecting a decrease from the previous year's figure of $224.9 million. The company's long-term debt rose to $2,147.7 million, marking a 25.8% increase compared with the previous year’s levels.
Outlook
ATI underscored the historically high level of commercial jet engines currently on firm industry backlog, emphasizing the organization's preparedness to meet this exceptional demand within its biggest end market. The company exudes confidence in its capacity to foster profitable growth, attributing its well-aligned strategy, robust capabilities and skilled team as pivotal strengths. ATI is optimistic about realizing its long-term objectives, which include exceeding $5 billion in revenues and achieving $1 billion in adjusted EBITDA by 2027.
Cameco has a projected earnings growth rate of 188% for the current year. The Zacks Consensus Estimate for CCJ’s current-year earnings has been revised upward by 12.5% in the past 60 days. The stock is up around 79.7% in a year.
The consensus estimate for CRS’s current fiscal year earnings is pegged at $3.97, indicating a year-over-year surge of 248.3%. CRS beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 14.3%. The company’s shares have rallied 22.8% in the past year.
The consensus estimate for APD’s current fiscal year earnings is pegged at $13, indicating a year-over-year rise of 13%. APD beat the Zacks Consensus Estimate in three of the last four quarters and missed one, with the average earnings surprise being 1%.
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ATI's (ATI) Earnings and Revenues Surpass Estimates in Q4
ATI Inc. (ATI - Free Report) recorded a fourth-quarter 2023 profit of $145.7 million or 99 cents per share against the year-ago quarter's $193 million or $1.30.
ATI posted adjusted earnings of 64 cents per share, up 2% from the year-ago quarter figure of 63 cents. Adjusted earnings exceeded the Zacks Consensus Estimate of 62 cents.
The company’s net sales in the fourth quarter were $1,064 million, exceeding the Zacks Consensus Estimate of $1,030 million. Net sales increased around 5% from $1,010.4 million in the prior-year quarter. ATI saw strong year-over-year sales growth in aerospace and defense.
In the fourth quarter of 2023, the uptick in deliveries of titanium mill products was countered by a decrease in deliveries of nickel-based alloys. The strong incremental margins persist due to increased volumes in higher-margin next-generation commercial aerospace platforms.
ATI Inc. Price, Consensus and EPS Surprise
ATI Inc. price-consensus-eps-surprise-chart | ATI Inc. Quote
Segment Highlights
High Performance Materials & Components (HPMC) recorded sales of $582.5 million in the fourth quarter, up 8% from sales recorded in the year-ago quarter. It also surpassed the Zacks Consensus Estimate of $550 million. In the reported quarter, HPMC's segment EBITDA surged 50% year over year to $125.1 million. Robust incremental margins were fueled by higher volumes, particularly on next-generation commercial aerospace platforms.
During the reported quarter, Advanced Alloys & Solutions (AA&S) recorded sales of $481.5 million, marking a decrease of approximately 14.7% from the previous year's figure of $564.5 million, which fell short of the Zacks Consensus Estimate of $509 million. While sales in defense products surged 25% compared to the prior year period, there was a decline in general industrial markets, contributing to the overall reduction. In terms of EBITDA, the AA&S segment reached $57.3 million for the quarter. Although there was an increase in titanium mill product deliveries, this was counterbalanced by reduced deliveries of nickel-based alloys.
FY23 Results
In 2023, full-year net earnings totaled $410.8 million, or $2.81 per share, whereas adjusted net earnings for the same period amounted to $373.4 million or $2.56 per share. This compares with full-year 2022 net earnings of $323.5 million, or $2.23 per share and adjusted net earnings of $351.2 million, or $2.41 per share. Revenues demonstrated a year-over-year increase of approximately 9%, rising from $3,836 million in 2022 to $4,173.7 million in 2023.
Financials
In 2023, cash provided by operating activities amounted to $85.9 million, reflecting a decrease from the previous year's figure of $224.9 million. The company's long-term debt rose to $2,147.7 million, marking a 25.8% increase compared with the previous year’s levels.
Outlook
ATI underscored the historically high level of commercial jet engines currently on firm industry backlog, emphasizing the organization's preparedness to meet this exceptional demand within its biggest end market. The company exudes confidence in its capacity to foster profitable growth, attributing its well-aligned strategy, robust capabilities and skilled team as pivotal strengths. ATI is optimistic about realizing its long-term objectives, which include exceeding $5 billion in revenues and achieving $1 billion in adjusted EBITDA by 2027.
Zacks Rank & Other Key Picks
ATI currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Basic Materials space are Cameco Corporation (CCJ - Free Report) and Carpenter Technology Corporation (CRS - Free Report) , both sporting a Zacks Rank #1 (Strong Buy), and Air Products and Chemicals, Inc. (APD - Free Report) , carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cameco has a projected earnings growth rate of 188% for the current year. The Zacks Consensus Estimate for CCJ’s current-year earnings has been revised upward by 12.5% in the past 60 days. The stock is up around 79.7% in a year.
The consensus estimate for CRS’s current fiscal year earnings is pegged at $3.97, indicating a year-over-year surge of 248.3%. CRS beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 14.3%. The company’s shares have rallied 22.8% in the past year.
The consensus estimate for APD’s current fiscal year earnings is pegged at $13, indicating a year-over-year rise of 13%. APD beat the Zacks Consensus Estimate in three of the last four quarters and missed one, with the average earnings surprise being 1%.