Allegheny Technologies Earnings: Here’s Why Investors are Not Excited 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. Shares are down 7.61%.

Allegheny Technologies Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 92% to $0.04 in the quarter versus EPS of $0.50 in the year-earlier quarter.

Revenue: Decreased 16.35% to $1.14 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Allegheny Technologies Inc. reported adjusted EPS income of $0.04 per share. By that measure, the company missed the mean analyst estimate of $0.12. It missed the average revenue estimate of $1.21 billion.

Quoting Management: “Challenging conditions in many of our end markets continued during the second quarter 2013,” said Rich Harshman, Chairman, President and Chief Executive Officer. “Lackluster global demand for standard stainless and grain-oriented electrical steel products combined with excess global supply and falling raw material surcharges for stainless resulted in continuing pricing pressure and reduced margins on these products.”

Key Stats (on next page)…

Revenue decreased 3.72% from $1.18 billion in the previous quarter. EPS decreased 55.56% from $0.09 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 $0.42 to a profit $0.25. For the current year, the average estimate has moved down from a profit of $1.20 to a profit of $0.79 over the last ninety days.

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