Allegheny Stock Surges As Q4 Results Top Street View; Plans $150M Buyback

Allegheny Technologies Inc ATI reported fourth-quarter sales growth of 16.3% year-over-year to $765.4 million, beating the consensus of $728.66 million.
High-Performance Materials & Components sales increased 41.1% Y/Y to $313.6 million, reflecting higher sales across nearly all end markets, led by commercial jet engines. Segment EBITDA was $60.7 million, or 19.4% of sales.
Advanced Alloys & Solutions sales increased 4% Y/Y to $451.8 million, and segment EBITDA was $49.2 million, or 10.9% of sales.
Adjusted EPS improved to $0.25 from $(0.33) in 4Q20, beating estimates of $0.10.
The gross margin expanded by 910 bps to 16%. The company reported an operating income of $67.2 million, compared to the loss of $(1.09) billion a year ago.
Adjusted EBITDA was $94.7 million for the quarter, compared to $23 million in 4Q20, and margin expanded by 888 bps to 12.4%
Allegheny generated cash from operating activities for FY21 of $16.1 million, compared to $166.9 million a year ago. It held cash and equivalents of $687.7 million at the end of the quarter.
Additionally, the board authorized the repurchase of up to $150 million of outstanding common stock.
"Looking ahead to the first quarter, we anticipate strong year-over-year revenue and earnings growth primarily driven by the ongoing commercial aerospace recovery and our business transformation efforts. We expect normal seasonal cash outflows, including deploying working capital to meet increased demand requirements," said Robert S. Wetherbee, Board Chair, President, and CEO.
Price Action: ATI shares are trading higher by 18.4% at $22.27 on the last check Wednesday.

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