Allegheny Technologies Second Quarter Earnings Sneak Peek

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S&P 500 (NYSE:SPY) component Allegheny Technologies Incorporated (NYSE:ATI) will unveil its latest earnings on Wednesday, July 25, 2012. Allegheny Technologies is a global producer of specialty metals. Through its innovative technologies, the company offers a wide range of specialty metals solutions and products, which include titanium and titanium alloys, nickel-based and superalloys, etc.

Allegheny Technologies Incorporated Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 56 cents per share, a decline of 20% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 70 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 58 cents during the last month. Analysts are projecting profit to rise by 13.8% compared to last year’s $2.48.

Past Earnings Performance: Last quarter, the company saw profit of 50 cents per share versus a mean estimate of net income of 50 cents per share. This comes after two consecutive quarters of exceeding expectations.

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Stock Price Performance: Between April 24, 2012 and July 19, 2012, the stock price fell $8.23 (-20.4%), from $40.33 to $32.10. The stock price saw one of its best stretches over the last year between January 31, 2012 and February 7, 2012, when shares rose for six straight days, increasing 6.8% (+$3.07) over that span. It saw one of its worst periods between May 1, 2012 and May 18, 2012 when shares fell for 14 straight days, dropping 24.3% (-$10.67) over that span.

Wall St. Revenue Expectations: Analysts are projecting a rise of 2.2% in revenue from the year-earlier quarter to $1.38 billion.

Analyst Ratings: With eight analysts rating the stock a buy, none rating it a sell and none rating the stock a hold, there are indications of a bullish stance by analysts.

Key Stats:

The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 21.8% over the last four quarters.

The company is looking to get back on track with this earnings announcement after a profit drop last quarter snapped a positive string of results. Net income rose 75.8% in the second quarter of the last fiscal year, 6130% in the third quarter of the last fiscal year and more than twofold in the fourth quarter of the last fiscal year before declining in the first quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.94 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 2.98 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 1.5% to $875 million while assets rose 0.2% to $2.57 billion.

A Look Back: In the first quarter, profit fell 0.2% to $56.2 million (50 cents a share) from $56.3 million (54 cents a share) the year earlier, meeting analyst expectations. Revenue rose 10.2% to $1.35 billion from $1.23 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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