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Allegheny (ATI) Q3 Loss Wider than Expected, Sales Miss

Allegheny Technologies Inc. ATI 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. Lower oil prices are also expected to hurt demand for its products in the oil and gas market.

Let's have a quick look at this Pennsylvania-based company's third-quarter release.

Estimate Trend & Surprise History

Investors should note that the Zacks Consensus Estimate for Allegheny for the third quarter has saw a downtrend over the past month. The company has beaten the Zacks Consensus Estimate in three of the trailing four quarters while missing in one.

ALLEGHENY TECH Price and EPS Surprise

ALLEGHENY TECH Price and EPS Surprise | ALLEGHENY TECH Quote

Earnings

Allegheny's adjusted loss was 21 cents per share for the quarter, wider than the Zacks Consensus Estimate of a loss of 11 cents.

Revenues

Allegheny reported revenues of $770.5 million, widely missing the Zacks Consensus Estimate of $839 million.

Key Stats/Developments to Note

Management remains focused on returning the company to sustainable profitable growth with an emphasis on strong balance sheet and cash flow generation. The company has been concentrating on restructuring initiatives for the same. For full year 2016, the company projects capital expenditure of $215 million.

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!

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ALLEGHENY TECH (ATI): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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