ATI Inc. ATI recorded a third-quarter 2024 profit of $82.7 million or 57 cents per share compared with the year-ago quarter's $90.2 million or 62 cents. ATI posted adjusted earnings of 60 cents, down 6% from the year-ago quarter figure of 64 cents. The bottom line missed the Zacks Consensus Estimate of 66 cents.

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The company’s third-quarter net sales were $1,051.2 million, missing the Zacks Consensus Estimate of $1,127.4 million. Net sales were up around 2.5% year over year. ATI saw higher year-over-year sales in aerospace and defense.

ATI’s Segment Highlights

High-Performance Materials & Components (HPMC) reported sales of $552.4 million for the third quarter, up 2.4% year over year. The figure missed the consensus estimate of $618.2 million. Aerospace and defense sales rose 4% on higher next generation commercial jet engine demand. HPMC's segment earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped 5.1% to $123.2 million. Sales growth for next-generation commercial aircraft engines led to sequential margin growth. 

Advanced Alloys & Solutions (AA&S) recorded sales of $498.8 million, up approximately 2.6% from the prior year's $486.1 million. The figure missed the consensus estimate of $525.4 million. The increase is attributed to lower conventional energy and general industrial markets sales, partly offset by higher year-over-year sales in aerospace & defense, medical and electronics. The segment's EBITDA for the quarter was $73.6 million, up 19.7% year over year.

ATI’s Financials

At the end of third-quarter 2024, cash and cash equivalents amounted to $406.6 million, down around 6% year over year. The company's long-term debt was $1,855.5 million, declining 13.6%.

ATI’s Outlook

The company anticipates ongoing uncertainty with major customers through the balance of 2024 and early 2025. ATI's strategy of leading in aerospace, military, and 'aero-like' businesses is expected to drive growth and margin expansion as demand continues to be robust in its end markets. The company remains committed to delivering long-term shareholder value.

ATI’s Rank & Key Picks

ATI currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks worth a look in the basic materials space include IAMGOLD Corporation IAG, Kinross Gold Corporation KGC and Barrick Gold Corporation GOLD.

IAMGOLD is slated to report third-quarter results on Nov. 7. The Zacks Consensus Estimate for third-quarter earnings is pegged at 11 cents. IAG beat the Zacks Consensus Estimate in three of the last four quarters, with the average earnings surprise being 200%. IAG carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Kinross Gold is slated to report third-quarter results on Nov 5, after market close. The Zacks Consensus Estimate for KGC’s third-quarter earnings is pegged at 17 cents. KGC beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 29.1%. KGC currently carries a Zacks Rank #1.

Barrick Gold is slated to report third-quarter results on Nov. 7, before the opening bell. The consensus estimate for Barrick Gold’s third-quarter earnings is pegged at 33 cents. GOLD, carrying a Zacks Rank #2, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 21.2%. 

 

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