ATI Inc. (NYSE:ATI) just released its second-quarter report and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 3.5% to hit US$1.3b. Statutory earnings per share (EPS) came in at US$1.09, some 6.6% above whatthe analysts had expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Taking into account the latest results, the most recent consensus for ATI from eight analysts is for revenues of US$5.15b in 2026. If met, it would imply a solid 9.3% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 39% to US$4.84. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$4.98b and earnings per share (EPS) of US$4.39 in 2026. So it seems there's been a definite increase in optimism about ATI's future following the latest results, with a decent improvement in the earnings per share forecasts in particular.

It will come as no surprise to learn that the analysts have increased their price target for ATI 21% to US$243on the back of these upgrades. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values ATI at US$275 per share, while the most bearish prices it at US$191. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that ATI's rate of growth is expected to accelerate meaningfully, with the forecast 19% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 10% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.1% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that ATI is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around ATI's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for ATI going out to 2028, and you can see them free on our platform here..

You should always think about risks though.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.