ATI's Earnings and Revenues Beat Estimates in Q4, Sales Up Y/Y

ATI Inc. ATI 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.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.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.ATI Inc. Price, Consensus and EPS Surprise ATI Inc. price-consensus-eps-surprise-chart | ATI Inc. QuoteATI’s 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 defence related sales jumped 13% compared to the prior year 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.ATI’s 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.ATI’s Financial PositionThe 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.ATI’s 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.ATI's Zacks Rank & Key PicksATI currently carries a Zacks Rank #3 (Hold).  Some better-ranked stocks in the Basic Materials space are Ingevity Corporation NGVT, ICL Group Ltd. ICL and Fortuna Mining Corp. FSM. While NGVT sports a Zacks Rank #1 (Strong Buy), ICL and FSM each carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.NGVT is slated to report fourth-quarter results on Feb. 18. The Zacks Consensus Estimate for Ingevity’s fourth-quarter earnings is pegged at 12 cents per share. NGVT beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 95.4%. Its shares have gained 5% in the past year.ICL is scheduled to report fourth-quarter results on Feb. 26. The Zacks Consensus Estimate for ICL Group’s fourth-quarter earnings is pegged at 6 cents per share. ICL beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 18.1%. Its shares have soared 33.8% in the past year.FSM is expected to report fourth-quarter results on March 5. The Zacks Consensus Estimate for Fortuna’s fourth-quarter earnings is pegged at 16 cents per share. FSM surpassed the Zacks Consensus Estimate in two of the trailing four quarters while missing it in the rest, with an average surprise of 53.6%. The stock has gained 69.7% in the past year. 5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Fortuna Mining Corp. (FSM): Free Stock Analysis Report ICL Group Ltd. (ICL): Free Stock Analysis Report Ingevity Corporation (NGVT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks