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DALLAS - On Tuesday, ATI Inc. (NYSE:ATI) reported third-quarter adjusted earnings that significantly exceeded analyst expectations, driven by strong aerospace and defense sales.
The specialty materials manufacturer’s shares surged 10.17% in pre-market trading after the release.
The company posted adjusted earnings of $0.85 per share for the third quarter, surpassing the analyst consensus of $0.73 by 16.4%. Revenue rose 7% YoY to $1.13 billion, slightly above the $1.12 billion consensus estimate. Aerospace and defense sales reached a record $793 million, representing 70% of the quarter’s total revenue and marking a 21% increase from the same period last year.
ATI’s strong performance was fueled by improved margins in both its business segments. The High Performance Materials & Components segment achieved a 24.2% EBITDA margin, while the Advanced Alloys & Solutions segment delivered a 17.3% margin, up from 14.4% in the previous quarter.
"We exceeded our guidance in the third quarter, delivering strong adjusted earnings and operating cash flow performance," said Kimberly A. Fields, President and CEO. "We continue to see positive demand signals in our core markets, as our customers ramp to achieve their growth targets."
The company generated $230 million in operating cash flow during the quarter, bringing its year-to-date total to $299 million - a $273 million improvement compared to the same period last year.
Following the strong results, ATI raised its full-year guidance. The company now expects adjusted earnings per share of $3.15-$3.21, up from its previous forecast of $2.90-$3.07, and adjusted EBITDA of $848-$858 million, compared to the prior range of $810-$840 million.
For the fourth quarter, ATI projects adjusted earnings of $0.84-$0.90 per share, above the analyst consensus of $0.83.
During the quarter, the company repurchased $150 million of its common stock at an average price of $76.07 per share, bringing its total 2025 share repurchases to $470 million.
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