Allegheny Technologies Inc. (ATI) is a diversified specialty materials producer operating through two segments, High Performance Materials and Components, and Flat-Rolled Products. Allegheny is in the process of finishing several self-funded capital projects — some of which have already been completed — to augment organic growth and cost structure. In Nov 2014, Allegheny announced that it has received more orders for its nickel-based alloy plate, initial orders for which had already been booked. These orders will be shipped in late fourth-quarter 2014 through the first half of 2015. Allegheny is benefiting from the secular shift to new titanium-intensive airframes, new energy efficient engines and an expanding aftermarket. Strong growth in demand for many products is expected from the oil and gas/chemical process industry. Let’s have a quick look at this Pennsylvania-based company’s fourth-quarter release. Estimate Trend & Surprise History Investors should note that the earnings estimate for Allegheny for the fourth quarter has been essentially stationary over the past week and month. The company has beaten the Zacks Consensus Estimate in 3 of the trailing 4 quarters with an average beat of around 56.14%. Earnings Allegheny delivered earnings of 18 cents per share. Earnings beat the Zacks Consensus Estimate of breakeven per share. Revenues Allegheny reported revenues of $1,047.5 million. This missed the consensus estimate of $1,134 million. Key Stats/Developments to Note Allegheny expects higher volumes and better product portfolio for its Flat Rolled Products segment related to HRPF. The company anticipates start-up costs of nearly $5 million through the first quarter of 2015 owing to full production capacities. Allegheny sees strong demand for its specialty plate products, driven by its backlog of nickel-based alloy plate for a large oil and gas project. Backlog was $1.7 billion at the end of 2014. Zacks Rank Currently, Allegheny has a Zacks Rank #5 (Strong Sell), but that could change following its earnings report which was just released. Market Reaction Allegheny’s shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today. Check back later for our full write up on Allegheny’s earnings report! 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 >> 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 ALLEGHENY TECH (ATI): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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