Allegheny Technologies Earnings: Net Income Keeps FALLING

S&P 500 (NYSE:SPY) component Allegheny Technologies Incorporated (NYSE:ATI) reported its results for the second quarter. Allegheny Technologies is a global producer of specialty metals. Through its innovative technologies, the company offers a wide range of specialty metals solutions and products, which include titanium and titanium alloys, nickel-based and superalloys, etc.

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Allegheny Technologies Incorporated Earnings Cheat Sheet

Results: Net income for Allegheny Technologies Incorporated fell to $56.4 million (50 cents per share) vs. $64 million (59 cents per share) a year earlier. This is a decline of 11.9% from the year-earlier quarter.

Revenue: Rose 0.6% to $1.36 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Allegheny Technologies Incorporated fell short of the mean analyst estimate of 54 cents per share. Analysts were expecting revenue of $1.38 billion.

Quoting Management: “Second quarter 2012 results were similar to those achieved in the first quarter 2012 in spite of a weakening global economy, demonstrating the benefit of ATI’s diversification strategy,” said Rich Harshman, Chairman, President and Chief Executive Officer.

“We believe that the long-term secular growth trends in our key global markets remain intact. However, demand for many of our products in the second quarter was impacted by slower than expected GDP growth in the U.S. and China and fiscal and economic uncertainties in Europe. Revenue and operating margins were also impacted by falling prices for most raw materials.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 10.2% to $1.35 billion in the first quarter. The figure rose 20.6% in the fourth quarter of the last fiscal year from the year earlier and climbed 27.7% in the third quarter of the last fiscal year from the year-ago quarter.

The company’s net income has fallen for two quarters in a row. In the first quarter, net income fell 0.2% from the year-earlier quarter.

The company fell short of estimates last quarter after being in line with expectations the quarter before with net income of 50 cents.

Looking Forward: Over the past ninety days, the average estimate for the third quarter has fallen from 79 cents per share to 70 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. For the fiscal year, the average estimate has moved down from $2.75 a share to $2.44 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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