ATI Inc. (NYSE: ATI) reported disappointing third quarter 2024 earnings results, missing analyst estimates for both earnings per share and revenue. The specialty materials company reported adjusted EPS of $0.60, well below the consensus estimate of $0.66, marking a 9.09% shortfall. ATI's Q3 revenue of $1.051 billion also fell short of the expected $1.124 billion by 6.47%.

The weaker-than-anticipated performance was attributed to challenges faced by the aerospace industry, including a slowdown in aircraft production ramp-up, supply chain disruptions caused by work stoppages, and transportation issues related to Hurricane Helene. These factors delayed certain shipments during the quarter.

In response to the underwhelming Q3 results, ATI lowered its full-year 2024 guidance. The company now expects adjusted EPS in the range of $2.24 to $2.30, down from its previous estimate of $2.40 to $2.60. ATI also cut its adjusted EBITDA guidance to $700 million to $710 million, from the prior range of $720 million to $750 million. Free cash flow projections were revised downward to $220 million to $300 million, compared to the earlier estimate of $260 million to $340 million.

ATI's stock plummeted over 10% following the earnings release, reflecting investor concern over the challenges facing the company and the reduced financial outlook. Despite the near-term headwinds, ATI's CEO Kimberly Fields stated that demand in the company's end markets remains strong, and reiterated the company's strategy of focusing on aerospace, defense, and "aero-like" markets for future growth and margin expansion.