Back to top

Image: Bigstock

Allegheny's (ATI) Q2 Loss Narrower Than Expected

Read MoreHide Full Article

Allegheny Technologies Inc. (ATI - Free Report)  is a diversified specialty materials producer operating through two segments, High Performance Materials and Components, and Flat-Rolled Products.

Allegheny should benefit from its diversified global growth markets and cost reduction measures. The company is also seeing healthy demand from aerospace OEMs. However, Allegheny is exposed to certain challenges (including pricing pressure) in its Flat Rolled Products segment. Selling prices and demand for the company’s standard stainless products remain under pressure.

Let’s have a quick look at this Pennsylvania-based company’s second-quarter release.

Estimate Trend & Surprise History

Investors should note that the Zacks Consensus Estimate for Allegheny for the second quarter has narrowed from a loss of 40 cents to 39 cents per share over the past month. The company has beaten the Zacks Consensus Estimate in three of the trailing four quarters while missing in one.

Earnings

Allegheny’s adjusted loss was 21 cents per share for the quarter, narrower than the Zacks Consensus Estimate of a loss of 39 cents.

Revenues

Allegheny reported revenues of $810.5 million, surpassing the Zacks Consensus Estimate of $761 million.

ALLEGHENY TECH Price and EPS Surprise

ALLEGHENY TECH Price and EPS Surprise | ALLEGHENY TECH Quote

Key Stats/Developments to Note

Demand from aerospace and defense continue to drive Allegheny’s High Performance Materials & Components (“HPMC”) segment. Sales in the sector accounted for 51% of total sales in the second quarter. Segment results were negatively impacted by high production expenses caused by low operating rates at the Rowley, UT titanium sponge facility.

The Flat Rolled Products (“FRP”) segment still faces challenging market conditions, particularly in oil and gas markets. However, the segment saw sequential growth in quarterly sales by 18% and lower sequential quarterly losses. The previously announced idling of the GOES operations was completed in the quarter.

Zacks Rank

Currently, Allegheny has a Zacks Rank #3 (Hold), but that could change following the company’s earnings report which was just released.

Market Reaction

Allegheny’s shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on Allegheny’s earnings report!

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 DaysClick to get this free report >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


ATI Inc. (ATI) - free report >>

Published in