NYSE$ATI

ATI Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

ATI's Q2 2020 earnings were impacted by significant charges, including goodwill impairment and debt extinguishment, amidst a challenging economic environment.

Allegheny Technologies Incorporated (ATI) reported Q2 2020 sales of $770 million and a net loss attributable to ATI of $422.6 million, or $(3.34) per share. These results include significant pre-tax charges, including goodwill impairment, debt extinguishment, and restructuring. Adjusted net loss was $2.3 million, or $(0.02) per share. The company is increasing its 2020 cost savings targets by $25 million.

  • Sales reached $770 million.
  • Business segment operating profit was $27.3 million, representing 3.5% of sales.
  • Net loss attributable to ATI was $422.6 million, or $(3.34) per share, including $420 million in after-tax charges.
  • Adjusted EBITDA was $57.6 million, or 7.5% of sales.

Headline financials

Total Revenue

$770M

Previous: $1.08B-28.7%
EPS (adj)

-$0.02

Previous: $0.40-105.0%
Free Cash Flow

-$423M

Previous: $75.1M-662.7%
Net Income

-$423M

Previous: $75.1M-662.7%
Operating Income

-$273M

Previous: $110M-348.5%
Gross Profit

$74.7M

Previous: $178M-58.0%
Cash & Equivalents

$539M

Previous: $281M+91.7%
Total Assets

$5.17B

Previous: $5.55B-6.8%

Revenue & EPS history

ATI · Revenue · Quarterly

$770M

Q2 2020-28.7%vs Q2 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

ATI · $301M total across 1 segment · Q2 2020

  • HPMC
    $301M-43.6%

Forward guidance

ATI anticipates challenging and uncertain economic conditions to persist for the balance of 2020 due to the ongoing COVID-19 pandemic. They are taking steps to mitigate the negative impacts while ensuring a strong balance sheet and preserving free cash flows.

Tailwinds

  • Significant steps to mitigate negative impacts on financial results.
  • Ensuring a strong balance sheet.
  • Preserving free cash flows.
  • Intending to emerge from the crisis as a stronger, more focused company.
  • Business conditions are likely to return to growth in 2021 and more meaningfully in 2022 and beyond.

Headwinds

  • Challenging and uncertain economic conditions are expected to persist.
  • Impact of the ongoing COVID-19 pandemic.
  • Steep demand declines in a majority of markets
  • reduced asset utilization rates negatively impacted operating margins
  • the joint venture idled production at its' Midland, PA facility in July 2020 due to a lack of relief from Section 232 tariffs

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 Q2 2020

Historical avgQ2 2020

+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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