Allegheny Technologies Incorporated Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Allegheny Technologies Incorporated (NYSE:ATI) will unveil its latest earnings tomorrow, Wednesday, January 23, 2013. 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.

Allegheny Technologies Incorporated Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 17 cents per share, a decline of 45.2% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 49 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 18 cents during the last month. Analysts are projecting profit to rise by 32.1% compared to last year’s $1.48.

Past Earnings Performance: The company has missed estimates in the last two quarters. In the third quarter, it missed the mark by 7 cents as a result of reporting net income of 32 cents against an estimate of profit of 39 cents per share. In the second quarter, the company fell short of forecasts by 4 cents.

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Here’s how Allegheny Technologies Incorporated traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:


A Look Back: In the third quarter, profit fell 43.3% to $35.3 million (32 cents a share) from $62.3 million (56 cents a share) the year earlier, missing analyst expectations. Revenue fell 9.8% to $1.22 billion from $1.35 billion.

Wall St. Revenue Expectations: Analysts predict a decline of 8.8% in revenue from the year-earlier quarter to $1.14 billion.

Analyst Ratings: With six analysts rating the stock a buy, none rating it a sell and two rating the stock a hold, there are indications of a bullish stance by analysts.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 20.6% in the fourth quarter of the last fiscal year, 10.2% in the first quarter and 0.4%in the second quarter before dropping in the third quarter.

The company is trying to use this earnings announcement to rebound from profit declines in the last three quarters. Net income fell 0.2% in the first quarter, by 11.9% in the second quarter and again in the third quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.2 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

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