The 10-second takeaway
For the quarter ended March 31 (Q1), Allegheny Technologies met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share shrank.
Margins contracted across the board.
Allegheny Technologies reported revenue of $1.35 billion. The nine analysts polled by S&P Capital IQ foresaw revenue of $1.37 billion on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $1.23 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.56. The 13 earnings estimates compiled by S&P Capital IQ averaged $0.48 per share on the same basis. GAAP EPS of $0.50 for Q1 were 7.4% lower than the prior-year quarter's $0.54 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 15.3%, 140 basis points worse than the prior-year quarter. Operating margin was 7.7%, 180 basis points worse than the prior-year quarter. Net margin was 4.2%, 40 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.44 billion. On the bottom line, the average EPS estimate is $0.70.
Next year's average estimate for revenue is $5.74 billion. The average EPS estimate is $2.79.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,038 members out of 1,097 rating the stock outperform, and 59 members rating it underperform. Among 302 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 294 give Allegheny Technologies a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Allegheny Technologies is outperform, with an average price target of $60.67.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.