ATI Inc. Reports Q3 Earnings Decline, Lowers Outlook

ATI Inc. announced third-quarter earnings that fell short of expectations, reporting a decrease in both net income and earnings per share. The company has also adjusted its full-year earnings outlook, citing uncertainties with key customers.

Date: 29-10-2024

AI Rating: 4

ATI Inc. has reported third-quarter earnings that show a decline compared to the previous year. This is highlighted by their net income of $82.7 million, which is down from $90.2 million in the same quarter last year. Additionally, the earnings per share (EPS) fell to $0.57 from $0.62 year-over-year. These figures indicate a negative trend in profitability for the company.

Moreover, ATI's adjusted earnings also missed analysts' expectations, coming in at $0.60 per share when the consensus forecast was $0.66. This shortfall in EPS can be concerning for investors as it reflects operational challenges and could affect investors' confidence in the stock.

Despite these disheartening results, ATI reported a slight revenue growth of 2.4%, increasing to $1.051 billion from $1.026 billion the previous year. While revenue growth is generally positive, it is overshadowed by the more significant declines in net income and EPS.

Looking forward, the company's outlook for the full year has been reduced. ATI is now expecting adjusted EPS to be in the range of $2.24 - $2.30, which is notably lower than the previous guidance of $2.40 - $2.60. This downward revision indicates management's cautious stance due to ongoing uncertainties with its most critical customers through the end of 2024 and early 2025.

Stocks: ATI