S&P 500 (NYSE:SPY) component Allegheny Technologies Incorporated (NYSE:ATI) reported higher profit for the second quarter as revenue showed growth. Allegheny Technologies Inc. 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.
Allegheny Technologies Incorporated Earnings Cheat Sheet for the Second Quarter
Results: Net income for the industrial metals and minerals company rose to $64 million (59 cents per share) vs. $36.4 million (36 cents per share) in the same quarter a year earlier. This marks a rise of 75.8% from the year earlier quarter.
Revenue: Rose 28.5% to $1.35 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: ATI fell short of the mean analyst estimate of 73 cents per share. It beat the average revenue estimate of $1.31 billion.
Quoting Management: “We continue to see strong secular growth in our key global markets,” said Rich Harshman, Chairman, President and Chief Executive Officer. “In the second quarter 2011, sales increased 28% compared to the same period in 2010, and increased 10% compared to the first quarter 2011.”
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 38.4%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 51.8% from the year earlier quarter.
The company fell short of forecasts after beating estimates in the previous two quarters. In the first quarter, it topped the mark by 5 cents, and in the fourth quarter of the last fiscal year, it was ahead by one cent.
Gross margins grew 2.1 percentage points to 16.5%. The growth seemed to be driven by increased revenue, as the figure rose 28.5% from the year earlier quarter while costs rose 25.4%.
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).
(Source: Xignite Financials)