Allegheny Tech Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Allegheny Technologies Incorporated (NYSE:ATI) will unveil its latest earnings on Wednesday, October 24, 2012. 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 40 cents per share, a decline of 36.5% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 70 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 43 cents during the last month. Analysts are projecting profit to rise by 12.4% versus last year to $1.91.

Past Earnings Performance: The company fell short of estimates last quarter after being in line with forecasts the quarter prior. In the second quarter, it reported net income of 50 cents per share versus a mean estimate of 54 cents. Two quarters ago, it reported profit of 50 cents per share.

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Stock Price Performance: Between July 25, 2012 and October 18, 2012, the stock price rose $5.80 (20.7%), from $27.97 to $33.77. The stock price saw one of its best stretches over the last year between August 2, 2012 and August 10, 2012, when shares rose for seven straight days, increasing 13.3% (+$3.82) over that span. It saw one of its worst periods between May 1, 2012 and May 18, 2012 when shares fell for 14 straight days, dropping 24.3% (-$10.67) over that span.

A Look Back: In the second quarter, profit fell 11.9% to $56.4 million (50 cents a share) from $64 million (59 cents a share) the year earlier, missing analyst expectations. Revenue rose 0.4% to $1.36 billion from $1.35 billion.

Wall St. Revenue Expectations: On average, analysts predict $1.31 billion in revenue this quarter, a decline of 3% from the year-ago quarter. Analysts are forecasting total revenue of $5.35 billion for the year, a rise of 3.3% from last year’s revenue of $5.18 billion.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 27.7% in the third quarter of the last fiscal year, 20.6% in the fourth quarter of the last fiscal year and 10.2% in the first quarter before increasing again in the second quarter.

After experiencing income drops the past two quarters, the company is hoping to use this earnings announcement to rebound. Net income dropped 0.2% in the first quarter and then again in the second quarter.

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

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.07 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)

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