NYSE$ATI

ATI Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

ATI's Q1 2021 financial results were released, exceeding expectations due to strong raw material price tailwinds and ongoing modest recovery in jet engine production.

Allegheny Technologies Incorporated reported Q1 2021 results with sales of $693 million and a net loss attributable to ATI of $7.9 million, or $(0.06) per share. Adjusted EBITDA was $62.6 million, or 9.0% of sales. Results improved sequentially due to higher operating levels and benefits from rising raw material prices.

  • Sales of $693 million, up 5% over Q4 2020.
  • Net loss attributable to ATI of $7.9 million, or $(0.06) per share.
  • Adjusted ATI EBITDA of $62.6 million, or 9.0% of sales.
  • Benefited from strong raw material price tailwinds.

Headline financials

Total Revenue

$693M

Previous: $956M-27.5%
EPS (adj)

-$0.06

Previous: $0.20-130.0%
Free Cash Flow

-$7.9M

Previous: $21.1M-137.4%
Net Income

-$7.9M

Previous: $21.1M-137.4%
Operating Income

$31.8M

Previous: $68.4M-53.5%
Gross Profit

$85.8M

Previous: $135M-36.4%
Cash & Equivalents

$542M

Previous: $639M-15.2%
Total Assets

$4.07B

Previous: $5.81B-29.9%

Revenue & EPS history

ATI · Revenue · Quarterly

$693M

Q1 2021-27.5%vs Q1 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

ATI · $241M total across 1 segment · Q1 2021

  • HPMC
    $241M-42.7%

Forward guidance

Looking ahead to the second quarter, ATI expects continued modest demand recovery for jet engine products, supported by increasing domestic air travel rates. They expect to see continued margin improvement in HPMC segment in 2021, accelerating in the second half of the year.

Tailwinds

  • Continued modest demand recovery for jet engine products.
  • Increasing domestic air travel rates in the United States and other parts of the world.
  • Jet engine forging share gains are beginning to pay dividends as industry production volumes increase.
  • Aggressive 2020 cost cutting efforts.
  • Continued margin improvement in HPMC segment in 2021, accelerating in the second half of the year.

Headwinds

  • USW leadership decided to strike Specialty Rolled Products locations beginning in late March.
  • Committed to business continuity plan to safely operate during strike.
  • Operating teams are committed to minimizing the operational interruption.
  • Operating teams are committed to minimizing the financial impact from the strike.
  • Seeking to reach a fair and equitable settlement with striking workers.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+2.5%

Avg return

Earnings day

+5.3%

Avg return

5 days after

+9.2%

Avg return

30 days after

60%

43 / 72 earnings

Positive

+28.8%

Q4 2016

Best reaction

-19.8%

Q3 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+6.7%+6.2%+19.8%
Q4 2025+4.3%+9.7%+26.6%
Q3 2025+7.1%+7.9%+9.4%
Q1 2025+14.5%+26.5%+46.5%
Q4 2024+9.9%+8.3%-1.2%
Q3 2024-14.3%-15.5%-4.9%
Q2 2024-2.6%+2.2%-1.7%
Q1 2024+13.4%+12.1%+17.9%
Q4 2023-4.2%-4.5%+20.5%
Q3 2023+11.7%+13.9%+15.3%
Q2 2023-5.9%-5.1%-1.7%
Q1 2023-3.1%-0.7%+2.1%
Q4 2022+9.1%+8.4%+16.4%
Q3 2022-12.1%-6.5%+0.1%
Q2 2022+14.5%+17.3%+17.3%
Q1 2022-4.7%-8.3%-2.1%
Q4 2021+19.4%+22.0%+38.5%
Q3 2021+7.8%+8.6%+1.5%
Q2 2021-6.3%-1.3%-8.7%
Q1 2021-3.2%-2.0%+1.9%
Q4 2020-6.5%+0.1%+8.0%
Q3 2020+11.4%+21.2%+72.8%
Q2 2020+3.6%+2.9%-1.0%
Q1 2020+3.9%+15.1%+54.0%
Q4 2019+13.5%+14.1%-4.8%
Q3 2019+16.0%+18.9%+20.2%
Q2 2019-6.7%-9.0%-26.9%
Q1 2019-4.9%-2.3%-14.5%
Q4 2018+3.8%+4.6%+12.6%
Q3 2018-6.7%-5.8%-2.8%
Q2 2018+6.6%+5.1%-4.0%
Q1 2018+4.5%+4.2%+8.6%
Q4 2017+2.0%+1.1%-5.5%
Q3 2017+2.8%+3.8%-6.1%
Q2 2017+9.3%+10.4%+21.2%
Q1 2017+4.7%+1.4%-11.2%
Q4 2016+28.8%+28.5%+13.5%
Q3 2016-19.8%-23.5%+1.1%
Q2 2016+18.7%+17.7%+11.1%
Q1 2016-0.5%
Q4 2015+9.1%
Q3 2015-19.8%
Q2 2015-18.0%
Q1 2015+13.2%
Q4 2014+1.7%
Q3 2014-2.5%
Q2 2014-7.8%
Q1 2014-0.1%
Q4 2013-3.4%
Q3 2013+2.4%
Q2 2013-1.1%
Q1 2013-1.3%
Q4 2012-1.2%
Q3 2012-13.5%
Q2 2012+0.7%
Q1 2012+7.6%
Q4 2011-0.9%
Q3 2011+3.8%
Q2 2011-9.3%
Q1 2011-0.6%
Q4 2010-3.2%
Q3 2010+5.2%
Q2 2010+1.2%
Q1 2009+10.3%
Q1 2010+0.6%
Q4 2009+1.6%
Q3 2009+3.7%
Q3 2008+3.7%
Q4 2008+12.4%
Q2 2009+12.4%
Q2 2008+12.4%
Q4 2007+12.4%

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