NYSE$ATI

ATI Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

ATI's Q4 2020 results exceeded expectations through strong cost control, with signs of commercial aero stabilization and actions to exit standard stainless sheet products and enhance high-return capabilities on track.

ATI reported Q4 2020 results with sales of $658 million and a net loss of $1,121.0 million, or $(8.85) per share, including $1,079.1 million of restructuring and other charges. On an adjusted basis, the net loss was $41.9 million, or ($0.33) per share, with adjusted EBITDA of $23.0 million.

  • Sales of $658 million, up 10% over Q3 2020.
  • Net loss attributable to ATI of $1,121.0 million, or $(8.85) per share; adjusted net loss of $41.9 million, or $(0.33) per share.
  • Restructuring and other charges, including previously announced non-cash asset impairments and related tax impacts, of $1,079.1 million, or $(8.52) per share.
  • Adjusted EBITDA of $23.0 million, up 39% over Q3 2020.

Headline financials

Total Revenue

$658M

Previous: $1.02B-35.4%
EPS (adj)

-$0.33

Previous: $0.36-191.7%
Adjusted EBITDA

$23M

No prior period
Net Income

-$1.12B

Previous: $56.5M-2075.8%
Operating Income

-$1.09B

Previous: $98.5M-1204.7%
Gross Profit

$45.2M

Previous: $169M-73.3%
Cash & Equivalents

$646M

Previous: $491M+31.6%
Total Assets

$4.03B

Previous: $5.63B-28.4%
Stock-Based Comp

$2.9M

No prior period

Revenue & EPS history

ATI · Revenue · Quarterly

$658M

Q4 2020-35.4%vs Q4 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

ATI · $222M total across 1 segment · Q4 2020

  • HPMC
    $222M-63.1%

Forward guidance

ATI anticipates a continued difficult market environment in Q1 2021 due to the Covid-19 resurgence and low global air passenger travel rates, but is optimistic about a demand rebound in the second half of the year driven by increasing narrow-body engine production volumes and new business in airframes.

Tailwinds

  • Demand is expected to improve in the second half of the year.
  • Increase in narrow-body engine production volumes.
  • ATI's jet engine-related share gains.
  • New business in airframes.
  • Focused on delivering operational excellence for customers.

Headwinds

  • Continued difficult market environment driven by the Covid-19 resurgence.
  • Relatively low rates of global air passenger travel.
  • First quarter 2021 compares to a robust pre-pandemic quarter.
  • Market conditions remain challenging.
  • Ongoing transformation of specialty rolled business.

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 Q4 2020

Historical avgQ4 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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