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Allegheny (ATI) Tops Earnings and Revenue Estimates in Q1
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Allegheny Technologies Inc. (ATI - Free Report) recorded net income of $21.1 million or 16 cents per share in first-quarter 2020, up from $15 million or 12 cents per share in the prior-year quarter.
Excluding one-time items, adjusted earnings per share were 20 cents that beat the Zacks Consensus Estimate of 13 cents.
The company delivered revenues of $955.5 million in the quarter, down 4.9% year over year. Nevertheless, the figure surpassed the Zacks Consensus Estimate of $913 million.
Allegheny Technologies Incorporated Price, Consensus and EPS Surprise
In the first quarter, revenues in the High Performance Materials & Components (“HPMC”) segment declined 15.4% year over year to $420.3 million. The company noted that 85% of unit sales were attributable to the aerospace and defense markets. Also, sales of next-generation jet engine products contributed 50% to total HPMC jet engine product sales. Operating profit in the unit rose 10.4% year over year to $57.1 million.
The Advanced Alloys & Solutions (“AA&S”) segment’s sales rose 5.3% year over year to $535.2 million. Per the company, higher HRPF conversion services billings as well as the aerospace and defense markets supported the unit’s sales. Operating profit in the division totaled $24.1 million, which rose 141% year over year. Margins benefitted from improved results from the STAL joint venture and higher surcharges on raw materials.
Financial Position
Allegheny ended the quarter with cash and cash equivalents of $639 million, up 294.5% year over year. Long-term debt fell 9.5% year over year at $1,390 million.
Net cash used in operating activities for the first quarter was $115.4 million.
Outlook
The company withdrew its guidance for 2020 due to uncertainties created by the coronavirus outbreak. Going forward, it expects challenging and uncertain economic conditions to sustain due to the impacts of the coronavirus on the global aerospace industry.
Price Performance
Shares of Allegheny have lost 66.5% in the past year compared with the industry’s 62.8% decline.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Equinox Gold Corp. (EQX - Free Report) , Franco-Nevada Corporation (FNV - Free Report) and Newmont Corporation (NEM - Free Report) .
Equinox Gold currently sports a Zacks Rank #1 (Strong Buy)and has a projected earnings growth rate of 231% for 2020. The company’s shares have gained 52.9% in a year.You can see the complete list of today’s Zacks #1 Rank stocks here.
Franco-Nevada has a projected earnings growth rate of 22% for 2020. It currently carries a Zacks Rank #2 (Buy). The company’s shares have rallied 105.5% in a year.
Newmont has a projected earnings growth rate of 96.2% for the current year. The company’s shares have rallied around 113% in a year. It currently has a Zacks Rank #2.
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Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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Allegheny (ATI) Tops Earnings and Revenue Estimates in Q1
Allegheny Technologies Inc. (ATI - Free Report) recorded net income of $21.1 million or 16 cents per share in first-quarter 2020, up from $15 million or 12 cents per share in the prior-year quarter.
Excluding one-time items, adjusted earnings per share were 20 cents that beat the Zacks Consensus Estimate of 13 cents.
The company delivered revenues of $955.5 million in the quarter, down 4.9% year over year. Nevertheless, the figure surpassed the Zacks Consensus Estimate of $913 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 first quarter, revenues in the High Performance Materials & Components (“HPMC”) segment declined 15.4% year over year to $420.3 million. The company noted that 85% of unit sales were attributable to the aerospace and defense markets. Also, sales of next-generation jet engine products contributed 50% to total HPMC jet engine product sales. Operating profit in the unit rose 10.4% year over year to $57.1 million.
The Advanced Alloys & Solutions (“AA&S”) segment’s sales rose 5.3% year over year to $535.2 million. Per the company, higher HRPF conversion services billings as well as the aerospace and defense markets supported the unit’s sales. Operating profit in the division totaled $24.1 million, which rose 141% year over year. Margins benefitted from improved results from the STAL joint venture and higher surcharges on raw materials.
Financial Position
Allegheny ended the quarter with cash and cash equivalents of $639 million, up 294.5% year over year. Long-term debt fell 9.5% year over year at $1,390 million.
Net cash used in operating activities for the first quarter was $115.4 million.
Outlook
The company withdrew its guidance for 2020 due to uncertainties created by the coronavirus outbreak. Going forward, it expects challenging and uncertain economic conditions to sustain due to the impacts of the coronavirus on the global aerospace industry.
Price Performance
Shares of Allegheny have lost 66.5% in the past year compared with the industry’s 62.8% decline.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Equinox Gold Corp. (EQX - Free Report) , Franco-Nevada Corporation (FNV - Free Report) and Newmont Corporation (NEM - Free Report) .
Equinox Gold currently sports a Zacks Rank #1 (Strong Buy)and has a projected earnings growth rate of 231% for 2020. The company’s shares have gained 52.9% in a year.You can see the complete list of today’s Zacks #1 Rank stocks here.
Franco-Nevada has a projected earnings growth rate of 22% for 2020. It currently carries a Zacks Rank #2 (Buy). The company’s shares have rallied 105.5% in a year.
Newmont has a projected earnings growth rate of 96.2% for the current year. The company’s shares have rallied around 113% in a year. It currently has a Zacks Rank #2.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>