NYSE$ATI

ATI Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

ATI reported second quarter 2021 results with increased HPMC sales and resolution of labor strike, while AA&S sales decreased due to strike impacts.

Allegheny Technologies Incorporated reported second quarter 2021 results with sales of $616 million and a net loss attributable to ATI of $49.2 million, or $(0.39) per share. Adjusted EPS of $(0.12) excluded strike-related costs and restructuring items. The aerospace recovery continues to gain momentum and the business transformation is on track.

  • Sales of $616 million with HPMC sales increasing 25% over Q1 2021 due to aerospace demand recovery.
  • AA&S sales decreased 30% vs. Q1 2021 due to strike-related impacts.
  • Net loss attributable to ATI was $49.2 million, or $(0.39) per share; adjusted EPS of $(0.12) excluding strike-related costs and restructuring items.
  • Segment EBITDA was $73.2 million, or 11.9% of sales, with HPMC segment EBITDA improving over 50% sequentially.

Headline financials

Total Revenue

$616M

Previous: $770M-20.0%
EPS (adj)

-$0.12

Previous: -$0.02-500.0%
Free Cash Flow

-$49.2M

Previous: -$423M+88.4%
Net Income

-$49.2M

Previous: -$423M+88.4%
Operating Income

-$11.3M

Previous: -$273M+95.9%
Gross Profit

$42.7M

Previous: $74.7M-42.8%
Cash & Equivalents

$473M

Previous: $539M-12.4%
Total Assets

$3.97B

Previous: $5.17B-23.1%

Revenue & EPS history

ATI · Revenue · Quarterly

$616M

Q2 2021-20%vs Q2 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

ATI · $301M total across 1 segment · Q2 2021

  • HPMC
    $301M-0.0%

Forward guidance

Looking forward to the third quarter, ATI anticipates continued recovery in the jet engine market and ongoing strength in energy and electronics end markets. Production will ramp back toward pre-strike levels across the balance of the third quarter.

Tailwinds

  • Continued recovery in jet engine market
  • Strength in energy end market
  • Strength in electronics end market
  • Production will ramp back toward pre-strike levels across the balance of the third quarter
  • Ongoing global economic recovery is gradually expanding and providing optimism for our most impactful end markets

Headwinds

  • Lingering effects on the SRP business
  • Strike by employees represented by the United Steelworkers created short-term headwinds
  • Below-normal operating rates due to strike
  • Higher costs for outside conversion activities due to strike
  • Unspecified impacts from COVID-19 pandemic

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 2021

Historical avgQ2 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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