Allegheny (ATI) Q2 Earnings Beat, Revenues Miss Estimates
Allegheny Technologies Inc. ATI is a global producer of specialty materials, offering nickel-based alloys and superalloys, stainless steel, titanium alloys, specialty alloys, and zirconium and other related alloys.
Allegheny reported net earnings of 52 cents per share for the second quarter that beat the Zacks Consensus Estimate of 36 cents.
Allegheny reported revenues of $1,009.5 million for the quarter, which missed the Zacks Consensus Estimate of $1,023.5 million.
Estimate Trend & Surprise History
Investors should note that the Zacks Consensus Estimate for Allegheny for the second quarter have been going up over the past month. The company has beaten the Zacks Consensus Estimate in three of the trailing four quarters with an average positive surprise of 38.7%.
Key Stats/Developments to Note
Going forward, Allegheny continues to expect year-over-year growth in operating margin and revenue of its High Performance Materials & Components (HPMC) division in the second half of 2018 resulting from improved asset utilization and growth in aerospace market demand.
Allegheny also expects strong end-market demand its Flat Rolled Products (FRP) unit to continue and also benefit from current operational improvements. It also expects growth in differentiated products and benefits from the A&T Stainless joint venture.
The company reiterated that it anticipates a strong second-half cash generation with at least $150 million of free cash flow for full-year 2018, which excludes contributions to the ATI Pension Plan.
Currently, Allegheny has a Zacks Rank #3 (Hold), but that could change following the company’s earnings report which was just released.
Allegheny’s shares were up roughly 8.3% in pre-market trading. 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!
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