Company Overview - ATI Inc. is a global producer of high-performance materials and solutions for aerospace and defense markets, as well as critical applications in electronics, medical, and specialty energy [2] - The company focuses on solving complex challenges through materials science and partners with customers to deliver extraordinary materials that enhance product performance [2] Upcoming Event - ATI's Chief Financial Officer, Don Newman, will speak at the Cowen 45th Annual Aerospace & Defense Conference on February 14, 2024, at 10:45 a.m. ET [1] - The event will be accessible via a link on the company's investor relations website, and an audio replay along with a full transcript will be available post-presentation [1]

ATI Inc. (ATI) recorded a fourth-quarter 2023 profit of $145.7 million or 99 cents per share against the year-ago quarter's $193 million or $1.30.ATI posted adjusted earnings of 64 cents per share, up 2% from the year-ago quarter figure of 63 cents. Adjusted earnings exceeded the Zacks Consensus Estimate of 62 cents.The company’s net sales in the fourth quarter were $1,064 million, exceeding the Zacks Consensus Estimate of $1,030 million. Net sales increased around 5% from $1,010.4 million in the prior-year ...

Allegheny Technologies (ATI) has been on a downward spiral lately with significant selling pressure. After declining 11.8% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.How to Determine if a Stock is OversoldWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whe ...

Financial Data and Key Metrics Changes - In Q4 2023, ATI delivered adjusted EBITDA of $161 million, representing 15% of sales, marking the highest revenue quarter of 2023 and the sixth consecutive quarter exceeding $1 billion in revenue [6][20] - Full year 2023 adjusted EBITDA totaled $635 million, with free cash flow reaching $165 million, exceeding the high end of guidance [7][20] - The consolidated adjusted EBITDA margin for the year was over 15%, with a target of reaching 20% in the long term [20][24] Business Line Data and Key Metrics Changes - Aerospace and Defense revenue increased by 32% year-over-year, with jet engine shipments up 15% year-over-year and 7% sequentially in Q4 [15][17] - The HPMC segment reported a margin of 21.5% in Q4, driven by aerospace and defense markets, which represented 86% of HPMC's Q4 sales [21] - The AA&S segment achieved nearly 12% margin in Q4, with A&D sales in this segment at 35%, up from 30% in Q4 2022 [22] Market Data and Key Metrics Changes - Sales from aerospace and defense accounted for 63% of total sales in Q4, up from 61% in Q3 and 10 percentage points higher than the previous year [14] - Demand for airframe materials, predominantly titanium, remains at historic highs, with airframe shipments surpassing $200 million for two consecutive quarters [15] - The defense business grew 21% sequentially and 16% year-over-year, driven by military rotorcraft and naval propulsion materials [17] Company Strategy and Development Direction - ATI is focused on operational efficiency and inventory management to support long-term cash generation and sustainable growth [5][9] - The company plans to expand titanium mill capacity by 80% over 2022 levels by late 2025, with a target of achieving full run rate of expanded capacity in the second half of 2024 [10][12] - ATI aims to exceed $5 billion in sales and achieve over $1 billion in adjusted EBITDA by 2027, with a strong focus on aerospace and defense markets [30][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fundamentals of the aerospace and defense markets, despite challenges in Q1 due to weather-related outages and lower metal prices [14][31] - The company anticipates a strong second half of 2024, driven by robust demand in aerospace and defense and the ramp-up of titanium melt assets [25][30] - Management acknowledged the need for ongoing improvements in operational efficiency and inventory management to align with market demand [13][19] Other Important Information - ATI completed significant pension actions, transferring $1.4 billion in gross pension liabilities to a third party, which is expected to enhance profitability and reduce volatility [22][23] - The company ended 2023 with $744 million in cash and $1.3 billion in total liquidity, with a net debt to adjusted EBITDA ratio of 2.3 times [25][24] Q&A Session Summary Question: Dynamics around bottlenecks and airframe sales - Management clarified that the observed decline in airframe sales was due to a shift in capacity towards defense sales, with expectations for airframe sales to return to strength [35][37] Question: Cash flow profile and impact on returns - Management indicated that while Q1 typically sees significant cash outflow, improvements in inventory management are expected to reduce this outflow compared to previous years [39][41] Question: Q1 guidance specifics for segment EBITDA - Management provided insights on the impacts of weather-related outages and operational challenges on Q1 earnings, with specific figures for expected impacts on both AA&S and HPMC segments [47][49] Question: Titanium capacity increases and margin contributions - Management confirmed that titanium is an accretive product space, with expectations for significant revenue contributions from increased capacity in the second half of 2024 [61][62] Question: Supply chain issues and their resolution - Management stated that supply chain issues are largely resolved, with ongoing efforts to manage any remaining challenges effectively [64][66]

Financial Performance - Fourth quarter revenue was $1.064 billion, a 5% increase compared to Q4 2022's $1.010 billion[7] - Full year revenue reached $4.174 billion, a 9% increase from $3.836 billion in 2022[10] - Full year free cash flow generation was $165 million[4] Segment Performance - High Performance Materials & Components (HPMC) segment revenue in Q4 2023 was $583 million, a 31% increase compared to $446 million in Q4 2022[7] - HPMC segment EBITDA increased by 50% to $125 million in Q4 2023, compared to $84 million in Q4 2022[7] - Advanced Alloys & Solutions (AA&S) segment revenue in Q4 2023 was $482 million, a 15% decrease compared to $565 million in Q4 2022[7] Strategic Progress - A&D (Aerospace and Defense) accounted for 63% of sales in Q4, up from 61% in Q3 2023 and 53% in Q4 2022[4] - Titanium shipments increased by 12% sequentially and 58% year-over-year[4] - The company successfully annuitized 85% of ATI qualified defined benefit pension liabilities in the fourth quarter[4] Market Outlook - Jet engine sales in Q4 2023 increased 7% sequentially and 15% year-over-year, with full year 2023 sales increasing 25% over 2022[4] - Airframe sales increased 47% compared to Q4 2022[5] - Defense sales increased 16% compared to Q4 2022[5]

For the quarter ended December 2023, Allegheny Technologies (ATI) reported revenue of $1.06 billion, up 5.3% over the same period last year. EPS came in at $0.64, compared to $0.53 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $1.03 billion, representing a surprise of +3.30%. The company delivered an EPS surprise of +3.23%, with the consensus EPS estimate being $0.62.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wa ...

Core Insights - Allegheny Technologies (ATI) reported quarterly earnings of $0.64 per share, exceeding the Zacks Consensus Estimate of $0.62 per share, and up from $0.53 per share a year ago, indicating a 21% year-over-year increase [1] - The company achieved revenues of $1.06 billion for the quarter, surpassing the Zacks Consensus Estimate by 3.30% and showing a year-over-year increase from $1.01 billion [1] - The stock has underperformed the market, losing approximately 10.1% since the beginning of the year compared to the S&P 500's gain of 1.6% [2] Earnings Performance - The earnings surprise for the recent quarter was 3.23%, and the company has surpassed consensus EPS estimates in all four of the last quarters [1] - The current consensus EPS estimate for the upcoming quarter is $0.54, with expected revenues of $1.03 billion, while the estimate for the current fiscal year is $2.38 on revenues of $4.35 billion [4] Industry Outlook - The Steel - Specialty industry, to which Allegheny Technologies belongs, is currently ranked in the top 6% of over 250 Zacks industries, indicating a favorable outlook [5] - The performance of Allegheny Technologies' stock may be influenced by the overall industry outlook, as the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [5] Future Expectations - The estimate revisions trend for Allegheny Technologies is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, suggesting it is expected to outperform the market in the near future [4] - Haynes International, another company in the same industry, is expected to report quarterly earnings of $0.70 per share, reflecting a year-over-year increase of 14.8% [5][6]

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Allegheny Technologies (ATI) , which belongs to the Zacks Steel - Speciality industry.This maker of steel and specialty metals has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 6.52%.For the last reported quarter, Allegheny Technologies came out with ea ...

SCOTTSDALE, Ariz., Jan. 25, 2024 (GLOBE NEWSWIRE) -- Confluent Medical Technologies (Confluent) announced that it has partnered with ATI to invest more than $50 million over the next several years in ATI's Nitinol melt and materials conversion infrastructure. With this significant investment, which will more than triple ATI's melt capacity for medical Nitinol, Confluent will become ATI's fulfillment partner and provide a suite of value-add services and order-fulfillment for ATI medical Nitinol mill product. ...

Allegheny Technologies (ATI) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on February 1, 2024, might help the stock move higher if these key numbers are ...