Allegheny Technologies Incorporated Earnings Cheat Sheet: Revenue Grows By Double-Digits For Fifth Straight Quarter

S&P 500 (NYSE:SPY) component Allegheny Technologies Incorporated (NYSE:ATI) reported higher profit for the third 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 Third Quarter

Results: Net income for Allegheny Technologies Incorporated rose to $62.3 million (56 cents per share) vs. $1 million (one cent per share) in the same quarter a year earlier. This marks a substantial increase from the year earlier quarter.

Revenue: Rose 27.7% to $1.35 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: ATI reported adjusted net income of 63 cents per share. By that measure, the company beat the mean estimate of 61 cents per share. Analysts were expecting revenue of $1.37 billion.

Quoting Management: “Our third quarter and year-to-date 2011 results during a time of global economic uncertainty demonstrates the benefits of ATI’s recent strategic investments and focus on key global markets and high-value differentiated products,” said Rich Harshman, Chairman, President and Chief Executive Officer.

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 34.3%, 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 has now seen net income rise in three straight quarters. In the second quarter, net income rose 75.8% and in the first quarter, the figure rose more than threefold.

The company topped expectations last quarter after falling short of forecasts in the second quarter with net income of 70 cents versus a mean estimate of net income of 73 cents per share.

Gross margins grew 7.5 percentage points to 16%. The growth seemed to be driven by increased revenue, as the figure rose 27.7% from the year earlier quarter while costs rose 17.3%.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 92 cents a share to 70 cents over the last ninety days. The average estimate for the fiscal year is $2.64 per share, down from $3.10 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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(Source: Xignite Financials)