Allegheny Technologies Earnings: Everything You Must Know Now

Allegheny Technologies Inc. (NYSE:ATI) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

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Allegheny Technologies Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 82% to $0.09 in the quarter versus EPS of $0.50 in the year-earlier quarter.

Revenue: Decreased 12.8% to $1.18 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Allegheny Technologies Inc. reported adjusted EPS income of $0.09 per share. By that measure, the company missed the mean analyst estimate of $0.17. It missed the average revenue estimate of $1.18 billion.

Quoting Management: “We saw continued sluggish demand from many of our major end markets during the first quarter,” said Rich Harshman, Chairman, President and Chief Executive Officer. “While demand from aerospace OEMs in support of new builds improved, compared to the fourth quarter 2012, demand from the jet engine aftermarket remained low. The markets for flat-rolled stainless sheet and plate and grain-oriented electrical steel remained challenging due to lackluster demand, low base-selling prices, and high levels of imports. Demand for forgings from the construction and mining equipment markets was depressed as OEMs adjusted production and reduced inventories to match current global demand.”

Key Stats (on next page)…

Revenue increased 7.11% from $1.1 billion in the previous quarter. EPS decreased 50% from $0.18 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.40 to a profit $0.35. For the current year, the average estimate has moved down from a profit of $1.74 to a profit of $1.49 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)