Upcoming AWS Coverage on Tenaris

LONDON, UK / ACCESSWIRE / February 6, 2017 / Active Wall St. announces its post-earnings coverage on Allegheny Technologies Inc. (NYSE: ATI). The Company announced its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year fiscal 2016 (FY16) on January 24, 2017. The Pittsburgh, Pennsylvania-based Company's quarterly sales rose on a year-over-year basis. Register with us now for your free membership at:

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One of Allegheny Technologies' competitors within the Metal Fabrication space, Tenaris S.A. (NYSE: TS), is expected to report its earnings results on February 22, 2017 after market close. The report will be for the fiscal Quarter ending December 2016. AWS will be initiating a research report on Tenaris following the release of its next earnings results.

Today, AWS is promoting its earnings coverage on ATI; touching on TS. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=ATI

http://www.activewallst.com/registration-3/?symbol=TS

Earnings Reviewed

In Q4 FY16, Allegheny Technologies' sales grew to $796.1 million from $738.9 million recorded at the end of Q4 FY15. However, sales numbers for Q4 FY16 lagged behind market consensus estimates of $817 million.

The steel and specialty metals producer's net income attributable to Allegheny Technologies was $9.9 million, or $0.09 per diluted share, in Q4 FY16 compared to net loss attributable to Allegheny Technologies of $226.9 million, or $2.12 loss per diluted share, in the prior year's comparable quarter. Excluding special items, the Company's net loss attributable to Allegheny Technologies narrowed during Q4 FY16 to $3.9 million or $0.04 loss per diluted share, from $52.9 million, or $0.50 loss per diluted share, in the year ago same quarter. The Company's adjusted net loss for the reported quarter was lower than the market expected net loss of $0.11 per diluted share.

For FY16, Allegheny Technologies reported sales of $3.13 billion, which was 16% lower than $3.72 billion recorded in FY15. The Company's net loss attributable to Allegheny Technologies widened during FY16 to $640.9 million, or $5.97 per diluted share, from net loss attributable to Allegheny Technologies of $377.9 million, or $3.53 loss per diluted share, in FY15. Furthermore, the Company's net loss attributable to Allegheny Technologies, excluding special items stood at $97.4 million, or $0.91 loss per diluted share, in FY16.

Operational Metrics

In the quarter ended on December 31, 2016, Allegheny technologies' gross profit came in at $97.3 million, compared to gross loss of $97.5 million in Q4 FY15. The Company reported operating income of $3.4 million during Q4 FY16 compared to operating loss of $329.2 million in last year's comparable quarter.

Furthermore, total segment operating profit for Q4 FY16 stood at $ 53.0 million, or 6.7% of sales, compared to operating loss of $ 99.1 million, or -13.4% of sales in the prior year's corresponding quarter.

Segment Performance

Allegheny Technologies' High Performance Materials & Components segment sales rose to $477.2 million in Q4 FY16 from $457.3 million reported in Q4 FY15. The segment's operating profit also increased during Q4 FY16 to $53.8 million, or 11.3% of segment sales, from $21.0 million, or 4.6% of segment sales, in Q4 FY15.

The Company's Flat Rolled Products segment sales grew to $318.9 million in Q4 FY16 from $281.6 million in Q4 FY15. The segment's operating loss narrowed during Q4 FY16 to $0.8 million from operating loss of $120.1 million in the year ago same quarter. Furthermore, total Flat Rolled products shipment volume was 187.87 million lbs. in Q4 FY16 compared to 154.43 million lbs. recorded in Q4 FY15.

Cash Matters and Balance Sheet

During the year ended December 31, 2016, the Company used cash in operations activities amounting to $43.7 million compared to cash provided by operating activities of $131.4 million in the last year's comparable period. The Company had cash and cash equivalents worth $229.6 million on December 31, 2016, which was above $149.8 million recorded as on December 31, 2015. Furthermore, the Company has long-term loan amounting to $1.77 billion as on December 31, 2016, compared to $1.49 billion as on December 31, 2015.

Earnings Guidance

In its outlook for full year FY17, Allegheny Technologies' management expects High Performance Materials & Components segment's revenue to grow about 10% y-o-y, and segment operating profit as a percentage of sales to be in the low teens. For Flat-Rolled Products segment, the Company anticipates to achieve sequential sales growth through the first two quarters of FY17. However, the Company's visibility into the second half of FY17 remains cautious, and market conditions is projected to challenging in certain key end markets. Furthermore, the Company expects Flat-Rolled Products segment's operating profit, as a percentage of sales to reach low single digit level in FY17.

Stock Performance

On Friday, February 03, 2017, the stock closed the trading session at $21.65, slightly rising 0.23% from its previous closing price of $21.60. A total volume of 1.71 million shares have exchanged hands. Allegheny Technologies' stock price rallied 25.00% in the last month, 64.51% in the past three months, and 25.99% in the previous six months. Additionally, the stock has surged 111.99% in the last twelve months and 35.91% on YTD basis. The stock currently has a market cap of $2.36 billion and has a dividend yield of 1.48%.

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SOURCE: Active Wall Street