Allegheny Technologies Inc. Earnings: Another Solid Sales Quarter

S&P 500 (NYSE:SPY) component Allegheny Technologies Incorporated (NYSE:ATI) reported higher profit for the fourth quarter as revenue showed growth. 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 for the Fourth Quarter

Results: Net income for the industrial metals and minerals company rose to $31.7 million (29 cents per share) vs. $15.1 million (15 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter.

Revenue: Rose 20.6% to $1.25 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: ATI reported adjusted net income of 31 cents per share. By that measure, the company fell short of mean estimate of 54 cents per share. It fell short of the average revenue estimate of $1.31 billion.

Quoting Management: “Our 2011 results continued to demonstrate the benefits of ATI’s recent strategic investments and our focus on key global markets and high-value differentiated products,” said Rich Harshman, Chairman, President and Chief Executive Officer. “Sales for 2011 were 28% higher than in 2010. Segment operating profit, excluding inventory fair value adjustments associated with the Ladish acquisition, was 12.3% of ATI sales, or $639.3 million. This performance represents a 79% increase over 2010 segment operating profit. Earnings per share before special charges was $2.23, 210% higher than 2010.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 28.1%, with the biggest boost coming in the first quarter when revenue rose 36.5% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 6130% and in the second quarter, the figure rose 75.8%.

The company fell short of estimates last quarter after beating the mark the quarter before with net income of 63 cents versus a mean estimate of net income of 61 cents per share.

Looking Forward: Over the past ninety days, the average estimate for the first quarter of the next fiscal year has fallen from 97 cents per share to 74 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate for the fiscal year is $2.42 per share, down from $2.65 ninety days ago.

Competitors to Watch: RTI Intl. Metals, Inc. (NYSE:RTI), China Direct Industries, Inc. (NASDAQ:CDII), Titanium Metals Corp. (NYSE:TIE), AK Steel Holding Corp. (NYSE:AKS), Precision Castparts Corp. (NYSE:PCP), ArcelorMittal (NYSE:MT), Schnitzer Steel (NASDAQ:SCHN), Steel Dynamics (NASDAQ:STLD) and Nucor (NYSE:NUE).

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

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com