Allegheny Technologies (ATI) Down 12.2% Since Last Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for Allegheny Technologies (ATI). Shares have lost about 12.2% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Allegheny Technologies due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. ATI’s Earnings and Revenues Beat Estimates in Q4, Sales Up Y/YATI recorded a fourth-quarter 2024 profit of $137.1 million or 94 cents per share compared with the year-ago quarter's $145.7 million or 99 cents.ATI posted adjusted earnings of 79 cents, up 23% from the year-ago quarter figure of 64 cents. The bottom line beat the Zacks Consensus Estimate of 60 cents.The company’s fourth-quarter net sales were $1,172.7 million, beating the Zacks Consensus Estimate of $1,083.5 million. Net sales were up around 10% year over year. ATI saw higher year-over-year sales in aerospace and defense.Segment HighlightsThe High-Performance Materials & Components segment reported sales of $634.2 million for the fourth quarter, up 8.9% year over year. The figure beat the consensus estimate of $598 million. Due to next-generation commercial jet engine demand, the fourth-quarter sales witnessed an increase. Aerospace and defense-related sales jumped 13% compared to the year-ago period. The segment’s EBITDA also went up 1.3% to $126.8 million.Advanced Alloys & Solutions recorded sales of $538.5 million, up approximately 11.8% from the prior year's $481.5 million. The figure beat the consensus estimate of $472 million. The increase can be attributed to higher sales of defense applications and next-generation commercial jet engine products, partly offset by lower sales of commercial airframe products. The segment's EBITDA for the quarter was $88 million, up 53.5% year over year.FY24 ResultsSales for 2024 were $4,362.1 million, up from $4,173.7 million in 2023. Earnings for the full year were $2.55 per share, a 9% drop from $2.81 in 2023.FinancialsThe company had a cash balance of $721 million and additional liquidity under the asset-based lending credit facility of around $525 million at the end of the fourth quarter. Cash flows from operating activities were $381 million for the quarter. Capital expenditures totaled $47 million. During the quarter, cash was also used for share repurchases of $70 million.OutlookATI expects adjusted earnings per share for 2025 to range between $2.80 and $3, considering strong demand in the end markets. The same for the first quarter is forecast to be 55-61 cents. Adjusted EBITDA is projected to be between $170M-$180 million in the first quarter and $800-$840 million for full-year 2025.The company aims to remain agile as it prepares for the normalization of the aerospace and defense supply chain, along with changes in global trade policies. It is confident in its ability to deliver growth and margin expansion in 2025 and beyond.How Have Estimates Been Moving Since Then?It turns out, estimates review flatlined during the past month.VGM ScoresCurrently, Allegheny Technologies has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookAllegheny Technologies has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerAllegheny Technologies belongs to the Zacks Steel - Speciality industry. Another stock from the same industry, Carpenter Technology (CRS), has gained 5.6% over the past month. More than a month has passed since the company reported results for the quarter ended December 2024.Carpenter reported revenues of $676.9 million in the last reported quarter, representing a year-over-year change of +8.4%. EPS of $1.66 for the same period compares with $0.85 a year ago.Carpenter is expected to post earnings of $1.73 per share for the current quarter, representing a year-over-year change of +45.4%. Over the last 30 days, the Zacks Consensus Estimate has changed +2.9%.Carpenter has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ATI Inc. (ATI): Free Stock Analysis Report Carpenter Technology Corporation (CRS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks