Specialty materials manufacturer ATI (NYSE: ATI) will be reporting results this Thursday before the bell. Here’s what to look for.
ATI beat analysts’ revenue expectations last quarter, reporting revenues of $1.26 billion, up 10.6% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.
Is ATI a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting ATI’s revenue to grow 17.2% year on year, improving from the 7.1% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. ATI has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at ATI’s peers in the aerospace segment, some have already reported their Q3 results, giving us a hint as to what we can expect. AAR delivered year-on-year revenue growth of 24.1%, beating analysts’ expectations by 4.3%, and Hexcel reported revenues up 8.8%, falling short of estimates by 1.3%. AAR traded down 7.2% following the results while Hexcel was also down 9.5%.
Read our full analysis of AAR’s results here and Hexcel’s results here.
Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the aerospace stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.7% on average over the last month. ATI is down 8.1% during the same time and is heading into earnings with an average analyst price target of $248.89 (compared to the current share price of $166).
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