Allegheny Technologies Reports Robust EPS Growth Expectations

A recent report highlights that Allegheny Technologies is set to announce an EPS of $0.66, reflecting a significant growth of 20% year-over-year. However, it also shows a revenue forecast of $1.13 billion, indicating positive trends amidst a challenging market environment.

Date: 21-09-2024

AI Rating: 6

Allegheny Technologies (ATI) closed its last trading session at $63.84, down 1.3%, which represents underperformance relative to the S&P 500's loss of 0.19%. Over the past month, the stock has also declined by 0.71%, falling behind the Basic Materials sector's gain of 2.2% and the S&P 500's increase of 2.06%.

The upcoming earnings report is crucial, as analysts are predicting an EPS of $0.66, showcasing a robust increase of 20% when compared to the same quarter last year. Additionally, the revenue estimate stands at $1.13 billion, representing a growth of 10.17% from the prior year. These aspects are indicative of a positive outlook for the company, particularly in terms of earnings.

However, the full-year estimates reflect a mix of growth and decline, with an anticipated EPS of $2.48 indicating a decrease of -3.13%, while revenue is projected at $4.48 billion, signaling a growth of 7.32%.

Analyst estimate revisions suggest a favorable trend for the company, as recent increases in estimates indicate growing confidence in ATI's business outlook. This is supported by research correlating positive revisions with near-term share price momentum. The Zacks Rank system further supports this sentiment, currently rating ATI as a #3 (Hold).

In terms of valuation, ATI's Forward P/E ratio stands at 26.1, which is a premium compared to its industry average of 19.83. Moreover, the PEG ratio at 1.58 is also higher than the industry's average of 1.1, signaling potential concerns regarding valuation in light of growth expectations. The Steel - Specialty industry, to which ATI belongs, is currently ranked 188 out of over 250 industries, placing it in the lower tier of market performance.

Stocks: ATI