Allegheny Technologies Crushes Earnings Estimates

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Allegheny Technologies (NYSE: ATI) reported earnings on July 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Allegheny Technologies met expectations on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share shrank significantly.

Margins shrank across the board.

Revenue details
Allegheny Technologies chalked up revenue of $1.36 billion. The eight analysts polled by S&P Capital IQ hoped for revenue of $1.38 billion on the same basis. GAAP reported sales were 0.4% higher than the prior-year quarter's $1.35 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.66. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.54 per share. GAAP EPS of $0.50 for Q2 were 15% lower than the prior-year quarter's $0.59 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 14.7%, 180 basis points worse than the prior-year quarter. Operating margin was 8.0%, 120 basis points worse than the prior-year quarter. Net margin was 4.2%, 50 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.43 billion. On the bottom line, the average EPS estimate is $0.65.

Next year's average estimate for revenue is $5.60 billion. The average EPS estimate is $2.37.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,035 members out of 1,091 rating the stock outperform, and 56 members rating it underperform. Among 251 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 244 give Allegheny Technologies a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Allegheny Technologies is buy, with an average price target of $56.73.

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