Earnings Preview For Allegheny Technologies (ATI)

Allegheny Technologies ATI is expected to publish its Q1 earnings report before the markets open on Wednesday, April 27. Analysts are predicting earnings per share to reach $0.50, a massive increase of 108% from the previous year's level of $0.24. Two months ago, Q1 earnings estimate was upgraded by $0.01. Allegheny Technologies is a Pittsburgh-based diversified specialty metals producer. Its products include titanium and titanium alloys, nickel-based alloys and superalloys, zirconium, hafnium and niobium, advanced powder alloys, stainless and specialty steel alloys, grain-oriented electrical steel, tungsten-based materials and cutting tools, carbon alloy impression die forgings, and large grey and ductile iron castings. ATI operates in three segments: High Performance Metals Segment, Flat-Rolled Products Segment and Engineered Products Segment. High Performance Metals segment produces, converts and distributes a range of alloys. Flat-Rolled Products segment produces, converts and distributes stainless steel, nickel-based alloys and superalloys, titanium and titanium-based alloys and specialty alloys in a range of product forms. The company's Engineered Products segment includes the production of tungsten powder, tungsten heavy alloys and tungsten carbide materials. Last Wednesday, Allegheny's shares managed to pass the $70 barrier for the first time in 52 weeks. Over the past 30 days, its shares added more than 7% to their value. Investors seemed to be encouraged by Allegheny's prospects for fast revenue growth. This quarter, revenues are projected to stand at $1.13 billion – up 26% on the previous year. For the year as a whole, revenues are predicted to rise 18.5%. The growth of earnings per share is expected to be even more spectacular, however. Analysts expect earnings per share to skyrocket by 272% this year. On the other hand, analysts have had their share of blunders in predicting Allegheny's performance. Last quarter, Allegheny's earnings per share was 50% below market expectations.