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 Technologies Inc. (ATI - Free Report) recorded net income of $111 million or 78 cents per share in third-quarter 2019, up from profit of $50.5 million or 37 cents per share in the prior-year quarter.
Excluding one-time items, adjusted earnings per share were 33 cents, meeting the Zacks Consensus Estimate.
The company delivered revenues of $1,018.7 million in the quarter, down roughly 0.2% year over year. However, the figure surpassed the Zacks Consensus Estimate of $993.5 million.
Allegheny Technologies Incorporated Price, Consensus and EPS Surprise
In the third quarter, revenues in the High Performance Materials & Components (“HPMC”) segment declined around 5.8% year over year to $551.7 million. The downside can be attributed to the divestment of titanium investment castings and industrial forgings businesses. Also, sales in the aerospace and defense markets fell 2% from the year-ago quarter’s level. Operating profit in the unit rose around 3.7% year over year to $78.8 million.
The Flat-Rolled Products (“FRP”) segment’s sales rose around 7.4% year over year to $467 million. Per the company, sales of high-value products more than offset lower sales of standard products. Operating profit in the division totaled $20.4 million, which declined 30.8% year over year. The downside reflects higher retirement benefit expenses and the impact of Section 232 tariffs related to Allegheny’s A&T Stainless joint venture.
Financial Position
The company ended the third quarter with cash and cash equivalents of $511.3 million, up more than 233% year over year. Long-term debt rose to $1,541.7 million from $1,535.3 million in the year-ago quarter.
Net cash used in operating activities was $10 million for the first nine months of 2019.
Outlook
For the HPMC unit, the company expects backlogs for single-aisle platforms to remain strong. However, it expects uneven order patterns along with inventory management actions by customers to negatively impact shipments in the fourth quarter of 2019. This is likely to partly lower the benefit from Allegheny’s larger share of high-value commercial jet engine materials and components.
For the FRP segment, the company expects consistent profitability in the fourth quarter of 2019 on sustained strength in high-value products, which includes both the U.S. and its STAL joint venture.Also, the favorable impact of higher nickel prices on raw material surcharge values is expected to drive performance of the segment.
Price Performance
Shares of Allegheny have lost 22% in the past year compared with the industry’s 12.1% decline.
Zacks Rank & Stocks to Consider
Allegheny currently carries a Zacks Rank #3 (Hold).
Kinross has an expected earnings growth rate of 210% for 2019. The company’s shares have surged 76.4% in the past year.
Franco-Nevada has a projected earnings growth rate of 39.3% for 2019. The company’s shares have rallied 48.8% in a year.
Kirkland Lake Gold has an estimated earnings growth rate of 93.4% for the current year. Its shares have moved up 132% in the past year.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.5% per year. So be sure to give these hand-picked 7 your immediate attention.
Image: Bigstock
Allegheny (ATI) Q3 Earnings Meet, Revenues Beat Estimates
Allegheny Technologies Inc. (ATI - Free Report) recorded net income of $111 million or 78 cents per share in third-quarter 2019, up from profit of $50.5 million or 37 cents per share in the prior-year quarter.
Excluding one-time items, adjusted earnings per share were 33 cents, meeting the Zacks Consensus Estimate.
The company delivered revenues of $1,018.7 million in the quarter, down roughly 0.2% year over year. However, the figure surpassed the Zacks Consensus Estimate of $993.5 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 third quarter, revenues in the High Performance Materials & Components (“HPMC”) segment declined around 5.8% year over year to $551.7 million. The downside can be attributed to the divestment of titanium investment castings and industrial forgings businesses. Also, sales in the aerospace and defense markets fell 2% from the year-ago quarter’s level. Operating profit in the unit rose around 3.7% year over year to $78.8 million.
The Flat-Rolled Products (“FRP”) segment’s sales rose around 7.4% year over year to $467 million. Per the company, sales of high-value products more than offset lower sales of standard products. Operating profit in the division totaled $20.4 million, which declined 30.8% year over year. The downside reflects higher retirement benefit expenses and the impact of Section 232 tariffs related to Allegheny’s A&T Stainless joint venture.
Financial Position
The company ended the third quarter with cash and cash equivalents of $511.3 million, up more than 233% year over year. Long-term debt rose to $1,541.7 million from $1,535.3 million in the year-ago quarter.
Net cash used in operating activities was $10 million for the first nine months of 2019.
Outlook
For the HPMC unit, the company expects backlogs for single-aisle platforms to remain strong. However, it expects uneven order patterns along with inventory management actions by customers to negatively impact shipments in the fourth quarter of 2019. This is likely to partly lower the benefit from Allegheny’s larger share of high-value commercial jet engine materials and components.
For the FRP segment, the company expects consistent profitability in the fourth quarter of 2019 on sustained strength in high-value products, which includes both the U.S. and its STAL joint venture.Also, the favorable impact of higher nickel prices on raw material surcharge values is expected to drive performance of the segment.
Price Performance
Shares of Allegheny have lost 22% in the past year compared with the industry’s 12.1% decline.
Zacks Rank & Stocks to Consider
Allegheny currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Kinross Gold Corporation (KGC - Free Report) , Franco-Nevada Corporation (FNV - Free Report) and Kirkland Lake Gold Ltd. , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kinross has an expected earnings growth rate of 210% for 2019. The company’s shares have surged 76.4% in the past year.
Franco-Nevada has a projected earnings growth rate of 39.3% for 2019. The company’s shares have rallied 48.8% in a year.
Kirkland Lake Gold has an estimated earnings growth rate of 93.4% for the current year. Its shares have moved up 132% in the past year.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.5% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>