Markets
ATI

Allegheny (ATI) Q4 Loss Narrower Than Expected, Sales Trail

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 affecting demand for its products in the oil and gas market.

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

Estimate Trend & Surprise History

Investors should note that the Zacks Consensus Estimate for Allegheny for the fourth quarter has been stable over the past month. The company has beaten the Zacks Consensus Estimate in two of the trailing four quarters while missing in two, with an average negative surprise of 21.67%.

Earnings

Allegheny's adjusted loss was 4 cents per share for the quarter, narrower than the Zacks Consensus Estimate of a loss of 11 cents.

Allegheny Technologies Incorporated Price and EPS Surprise

Allegheny Technologies Incorporated Price and EPS Surprise | Allegheny Technologies Incorporated Quote

Revenues

Allegheny reported revenues of $796.1 million, missing the Zacks Consensus Estimate of $817 million.

Key Stats/Developments to Note

Management will remain focused on generating cash in 2017. The company has been concentrating on restructuring initiatives for the same in 2016. For full year 2017, the company projects capital expenditure of around $125 million, including around $40 million for the expansion at its Chinese joint venture. Beyond 2017, capital expenditure is not expected to increase more than $100 million for next several years.

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 up 4.8% 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!

Zacks' Top 10 Stocks for 2017

In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?

Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>

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

Allegheny Technologies Incorporated (ATI): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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.

In This Story

ATI

Other Topics

Investing Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More