How The Wheels Came Off Allegheny Technologies' Bus
Allegheny Technologies (NYS: ATI) reported earnings on Jan. 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Allegheny Technologies missed on revenue and whiffed on earnings per share.
Compared to the prior-year quarter, revenue grew significantly, and earnings per share improved significantly.
Margins expanded across the board.
Allegheny Technologies notched revenue of $1.3 billion. The eight analysts polled by S&P Capital IQ expected sales of $1.3 billion. Sales were 21% higher than the prior-year quarter's $1.0 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.31. The 10 earnings estimates compiled by S&P Capital IQ anticipated $0.54 per share on the same basis. GAAP EPS of $0.29 for Q4 were 81% higher than the prior-year quarter's $0.16 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 13.5%, 120 basis points better than the prior-year quarter. Operating margin was 5.7%, 200 basis points better than the prior-year quarter. Net margin was 2.5%, 100 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.4 billion. On the bottom line, the average EPS estimate is $0.72.
Next year's average estimate for revenue is $5.8 billion. The average EPS estimate is $3.64.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,050 members out of 1,107 rating the stock outperform, and 57 members rating it underperform. Among 324 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 318 give Allegheny Technologies a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Allegheny Technologies is outperform, with an average price target of $61.42.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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