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What: Shares of specialty materials maker Allegheny Technologies Incorporated jumped as much as 13% today after reporting earnings.
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So what: First quarter sales jumped 7% sequentially to $1.13 billion and net income swung from a loss a year ago to a $10.0 million profit, or $0.09 per share. Earnings fell a penny below expectations but revenue topped Wall Street's estimate of $1.08 billion. And in a market where revenue growth is hard to find that had investors excited today.
Now what: Improvement in the aerospace market helped drive the strong results, with sales up 14% sequentially in that segment. Management expects that growth to continue and move into precision forgings, casting, and components as next generation jet engines are built. There's still a lot of optimism priced in at 27 times 2015 earnings estimates but Allegheny Technologies appears to have turned the corner financially and has some tailwinds when it comes to a growing commercial aviation market in coming years.
The article Why Shares of Allegheny Technologies Incorporated Popped Today originally appeared on Fool.com.
Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.