Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Atkore Inc. (ATKR) , which belongs to the Zacks Wire and Cable Products industry, could be a great candidate to consider.This company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 13.33%.For the most recent quarter, Atkore ...

Company Overview - Atkore is a global manufacturer of electrical, safety, and infrastructural solutions, with approximately 75% of sales derived from electrical products, and over 90% when including support functions [3] - The company has experienced significant sales growth, from $1.7 billion a decade ago to $3.9 billion in 2022, with operating margins increasing from low single digits to 30% during the same period [4] Recent Performance - In fiscal 2023, Atkore reported revenues of $3.52 billion, a 10% decline from 2022, with operating profits down 28% to $893 million, resulting in earnings of approximately $17 per share [6] - The company has maintained a manageable net debt of $374 million, with EBITDA exceeding $1 billion, and operating margins still at 25% despite the decline in results [6] Market Trends - The company has faced a normalization in results, with first quarter sales down 4% to $799 million and EBITDA at $213 million, while operating profit margins were reported near 22% [7] - In the second quarter, revenues fell over 11% year-over-year to $793 million, with adjusted EBITDA remaining stable at $212 million, indicating ongoing pricing pressure [7] Future Outlook - Atkore has guided for flat results in 2024, projecting sales between $3.50 billion and $3.65 billion, with EBITDA expected between $900 million and $950 million, and earnings per share between $16 and $17 [6][7] - The company is trading at around 8 times earnings, with a potential revenue run rate of $3.0 billion to $3.5 billion, and management's focus on share buybacks supports a favorable risk/reward scenario [8]

The sales volumes of this electrical products company declined in its fiscal second quarter, but the stock still looks like a good value.Shares in electrical products company Atkore (ATKR -0.83%) declined by 8% in the week to 11 a.m. ET Friday. The decrease occurred in a week when the company reported disappointing second-quarter earnings.It's no secret that Atkore's sales will be challenged this year due to the price correction of commodities such as steel and PVC, which will lower prices. Just as Atkore b ...

Second Quarter 2024 Earnings Presentation and Business Update May 7, 2024 ...

Atkore Inc. (NYSE:ATKR) Q2 2024 Earnings Conference Call May 7, 2024 8:00 AM ET Company Participants Matthew Kline - VP, Treasury and IR Bill Waltz - President and CEO David Johnson - CFO Conference Call Participants Chris Moore - CJS Securities Andrew Kaplowitz - Citigroup Deane Dray - RBC Chris Dankert - Loop Capital Alex Rygiel - B. Riley Operator Good morning. My name is Pauly and I will be your conference operator today. At this time, I would like to welcome everyone to Atkore's Second Quarter Fiscal Y ...

Core Insights - Atkore Inc. reported quarterly earnings of $4.08 per share, exceeding the Zacks Consensus Estimate of $3.70 per share, but down from $4.87 per share a year ago, indicating a 16.1% year-over-year decline [1] - The company achieved an earnings surprise of 10.27% for the quarter, having surpassed consensus EPS estimates in all four of the last quarters [1] - Revenue for the quarter was $792.91 million, missing the Zacks Consensus Estimate by 1.55% and down from $895.93 million year-over-year, marking an 11.5% decline [1] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $4.74, with expected revenues of $983.2 million, and for the current fiscal year, the EPS estimate is $16.92 on revenues of $3.52 billion [4] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [2] Industry Context - The Wire and Cable Products industry, to which Atkore belongs, is currently ranked in the top 1% of over 250 Zacks industries, suggesting strong performance potential [4] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [3]

Exhibit 99.1 Atkore Inc. Announces Second Quarter 2024 Results • Net sales of $792.9 million, down 11.5% versus prior year • Net income per diluted share decreased by $0.64 versus prior year to $3.67; Adjusted net income per diluted share decreased by $0.79 versus prior year to $4.08 • Net income decreased by $36.2 million versus prior year to $138.0 million; Adjusted EBITDA decreased by $64.1 million versus prior year to $211.9 million • Full-year Adjusted EBITDA outlook adjusted to $850 - $900 million; Ad ...

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Atkore Inc.'s unaudited condensed consolidated financial statements for the quarter ended March 29, 2024, detailing financial performance, position, and cash flows [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Atkore reported decreased net sales and net income for both the three and six months ended March 29, 2024, with diluted earnings per share also declining Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended March 29, 2024 | Three Months Ended March 31, 2023 | Six Months Ended March 29, 2024 | Six Months Ended March 31, 2023 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $792,911 | $895,934 | $1,591,392 | $1,729,755 | | **Gross profit** | $291,575 | $352,882 | $582,115 | $687,235 | | **Operating income** | $178,810 | $239,891 | $354,267 | $471,471 | | **Net income** | $137,955 | $174,194 | $276,335 | $347,686 | | **Diluted EPS** | $3.67 | $4.31 | $7.28 | $8.52 | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income decreased for both the three and six months ended March 29, 2024, primarily due to lower net income and negative foreign currency translation adjustments Consolidated Statements of Comprehensive Income (in thousands) | Metric | Three Months Ended March 29, 2024 | Three Months Ended March 31, 2023 | Six Months Ended March 29, 2024 | Six Months Ended March 31, 2023 | | :--- | :--- | :--- | :--- | :--- | | **Net income** | $137,955 | $174,194 | $276,335 | $347,686 | | **Other comprehensive income (loss)** | $(4,872) | $2,663 | $4,908 | $13,987 | | **Comprehensive income** | $133,083 | $176,857 | $281,243 | $361,673 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 29, 2024, Atkore's total assets slightly increased, while total liabilities decreased, leading to an increase in total equity primarily driven by retained earnings Balance Sheet Highlights (in thousands) | Metric | March 29, 2024 | September 30, 2023 | | :--- | :--- | :--- | | **Total current assets** | $1,575,293 | $1,538,490 | | **Total Assets** | $3,014,728 | $2,935,009 | | **Total current liabilities** | $510,403 | $564,604 | | **Total Liabilities** | $1,442,832 | $1,466,890 | | **Total Equity** | $1,571,896 | $1,468,119 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities decreased for the six months ended March 29, 2024, while cash used in investing and financing activities also saw changes, resulting in a net decrease in cash and cash equivalents Cash Flow Summary (in thousands) | Activity | Six Months Ended March 29, 2024 | Six Months Ended March 31, 2023 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $245,323 | $403,396 | | **Net cash used in investing activities** | $(78,971) | $(156,074) | | **Net cash used for financing activities** | $(187,529) | $(284,262) | | **Decrease in cash and cash equivalents** | $(20,064) | $(34,409) | | **Cash and cash equivalents at end of period** | $368,050 | $354,342 | [Condensed Consolidated Statement of Changes in Shareholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Shareholders%27%20Equity) Shareholders' equity increased as of March 29, 2024, primarily due to net income, partially offset by common stock repurchases and dividends paid - Key activities impacting equity in the first six months of fiscal 2024 include net income of **$276.3 million**, stock repurchases totaling **$156.6 million** (**$97.4M** in Q1, **$59.2M** in Q2), and the declaration of **$11.7 million** in dividends[23](index=23&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, business segments, the impact of the Inflation Reduction Act on solar energy tax credits, and subsequent events including share repurchases and dividends - Atkore operates through two main segments: Electrical, which manufactures products for electrical power systems, and Safety & Infrastructure, which provides solutions like metal framing and perimeter security[29](index=29&type=chunk)[95](index=95&type=chunk) - Under the Inflation Reduction Act (IRA), the company began recognizing transferable solar energy tax credits in fiscal 2024. For the six months ended March 29, 2024, this resulted in a **$37.9 million** benefit to cost of sales and a **$30.0 million** reduction in revenue due to sharing the economic value with customers. All related activity is within the Safety & Infrastructure segment[40](index=40&type=chunk)[41](index=41&type=chunk)[44](index=44&type=chunk) - The company's debt as of March 29, 2024, totaled **$763.8 million**, consisting primarily of a Senior Secured Term Loan due 2028 and Senior Notes due 2031[77](index=77&type=chunk) - Subsequent to the quarter's end, the company repurchased an additional **204.8 thousand shares** for **$36.1 million**. On May 2, 2024, the board declared a quarterly cash dividend of **$0.32 per share**[105](index=105&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, highlighting decreased net sales due to pricing normalization and solar energy tax credits, lower segment Adjusted EBITDA, and strong liquidity [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Net sales and gross profit decreased for both the three and six months ended March 29, 2024, primarily driven by lower average selling prices and the impact of solar energy tax credits Q2 2024 vs Q2 2023 Operations (in thousands) | Metric | Q2 2024 | Q2 2023 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $792,911 | $895,934 | $(103,023) | (11.5)% | | **Gross profit** | $291,575 | $352,882 | $(61,307) | (17.4)% | | **Operating income** | $178,810 | $239,891 | $(61,081) | (25.5)% | | **Net income** | $137,955 | $174,194 | $(36,239) | (20.8)% | Drivers of Net Sales Change (Q2 2024 vs Q2 2023) | Driver | % Change | | :--- | :--- | | Volume | (0.8)% | | Average selling prices | (9.5)% | | Solar energy tax credits | (1.2)% | | **Total Net Sales** | **(11.5)%** | Six-Month 2024 vs 2023 Operations (in thousands) | Metric | 6M 2024 | 6M 2023 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $1,591,392 | $1,729,755 | $(138,363) | (8.0)% | | **Gross profit** | $582,115 | $687,235 | $(105,120) | (15.3)% | | **Operating income** | $354,267 | $471,471 | $(117,204) | (24.9)% | | **Net income** | $276,335 | $347,686 | $(71,351) | (20.5)% | [Segment Results](index=26&type=section&id=Segment%20Results) Both the Electrical and Safety & Infrastructure segments experienced declines in net sales and Adjusted EBITDA for Q2 2024 and the six-month period, driven by lower pricing, solar tax credits, and reduced volumes Electrical Segment Performance (Q2 2024 vs Q2 2023) | Metric | Q2 2024 | Q2 2023 | % Change | | :--- | :--- | :--- | :--- | | **Net sales** | $590.8M | $681.0M | (13.2)% | | **Adjusted EBITDA** | $195.8M | $256.9M | (23.8)% | | **Adjusted EBITDA margin** | 33.1% | 37.7% | -4.6 p.p. | Safety & Infrastructure Segment Performance (Q2 2024 vs Q2 2023) | Metric | Q2 2024 | Q2 2023 | % Change | | :--- | :--- | :--- | :--- | | **Net sales** | $202.4M | $215.1M | (5.9)% | | **Adjusted EBITDA** | $25.5M | $33.2M | (23.1)% | | **Adjusted EBITDA margin** | 12.6% | 15.4% | -2.8 p.p. | [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with substantial cash and available credit, despite a decrease in cash provided by operating activities primarily due to lower operating income and increased working capital usage - The company believes it has sufficient liquidity, with **$368.1 million** in cash and cash equivalents as of March 29, 2024[138](index=138&type=chunk) - Atkore has an asset-based credit facility (ABL) with **$325.0 million** capacity. As of March 29, 2024, there were no outstanding borrowings, and approximately **$322.4 million** was available[139](index=139&type=chunk) Cash Flow Summary (Six Months Ended) | Activity (in thousands) | March 29, 2024 | March 31, 2023 | | :--- | :--- | :--- | | **Operating activities** | $245,323 | $403,396 | | **Investing activities** | $(78,971) | $(156,074) | | **Financing activities** | $(187,529) | $(284,262) | - The decrease in cash from operations was primarily due to lower operating income and a **$58.0 million** increase in cash used for working capital[145](index=145&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) There have been no material changes to the company's quantitative and qualitative disclosures regarding market risks since its last Annual Report on Form 10-K - There have been no material changes to market risk disclosures from the most recent Form 10-K[157](index=157&type=chunk) [Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 29, 2024, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that disclosure controls and procedures were effective as of the end of the reporting period[159](index=159&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[159](index=159&type=chunk) [PART II. OTHER INFORMATION](index=35&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to various legal claims in the ordinary course of business, with historical 'Special Products Claims' resolved by indemnification from Johnson Controls, Inc., and no expected material adverse effects from current proceedings - The company is indemnified by Johnson Controls, Inc. (JCI) for "Special Products Claims" related to its previously manufactured anti-microbial coated steel sprinkler pipe[88](index=88&type=chunk) - As of the filing date, no Special Product Claims are pending against the company, as JCI has resolved all claims at its own expense[89](index=89&type=chunk) - Management does not believe that any existing legal proceedings will have a material adverse effect on the company's business, financial condition, or results of operations[91](index=91&type=chunk) [Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K - There have been no material changes to the risk factors from the most recent Form 10-K[161](index=161&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company continued its share repurchase program, utilizing a portion of its authorized funds during the second quarter of fiscal 2024, with a significant amount remaining available for future repurchases - The board of directors has authorized a total of **$1.3 billion** for the share repurchase program. As of March 29, 2024, **$153.1 million** remained available under this authorization[161](index=161&type=chunk) Issuer Purchases of Equity Securities (Q2 2024) | Period | Total Shares Purchased (thousands) | Avg Price Paid Per Share | | :--- | :--- | :--- | | Dec 30, 2023 to Jan 26, 2024 | 137 | $153.43 | | Jan 27, 2024 to Mar 1, 2024 | 185 | $147.98 | | Mar 2, 2024 to Mar 29, 2024 | 67 | $166.85 | | **Total** | **389** | **N/A** | [Defaults Upon Senior Securities](index=35&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section is not applicable for the current reporting period - Not applicable[163](index=163&type=chunk) [Mine Safety Disclosures](index=35&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable for the current reporting period - Not applicable[164](index=164&type=chunk) [Other Information](index=35&type=section&id=Item%205.%20Other%20Information) The company disclosed a new Rule 10b5-1 trading arrangement initiated by a segment President for the potential sale of company shares - Mark Lamps, President, Safety & Infrastructure, initiated a new 10b5-1 trading arrangement on February 13, 2024, for the potential sale of **2,000 shares**[165](index=165&type=chunk) [Exhibits](index=37&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data files - Exhibits filed include CEO and CFO certifications pursuant to Sarbanes-Oxley Act Sections 302 and 906, and XBRL interactive data files[167](index=167&type=chunk)

Volatility has increased on Wall Street, and many investors wonder if indices could decline double digits or even crash in the coming weeks. While a steep fall in stock prices can undoubtedly disrupt portfolios, astute investors recognize such a decline as an opportunity to acquire high-quality assets, including small-capitalization (cap) shares, at attractive valuations.Enter the companies in the Russell 2000 index, which includes the 2,000 small-caps within the universe of U.S. equities. Analysts point ou ...

Group 1: Market Overview - Investors are encouraged to focus on Russell 2000 stocks with strong buy ratings, as they typically have lower valuations compared to large-cap stocks like FAANG and the Nasdaq composite [1] - Small-cap stocks in the Russell 2000 index are often overlooked but present attractive opportunities for those seeking undervalued companies with growth potential [1] - Small-cap companies generally have more room for growth due to being earlier in their life cycle compared to large, mature corporations, leading to higher revenue and earnings growth rates [1] Group 2: Company Analysis - Lantheus Holdings (LNTH) - Lantheus Holdings reported total revenues of $1.3 billion for 2023, marking a 39% year-over-year growth, driven by products PYLARIFY and DEFINITY, which saw increases of 61% and 14% respectively [2] - The company has positive Phase 3 results for PNT2002 in treating metastatic castration-resistant prostate cancer and has filed for PNT2003 to treat neuroendocrine tumors [2] - Analysts have a moderate buy consensus for LNTH with a price target range of $82 to $127, suggesting a potential upside of approximately 74.3% from its current price [2] Group 3: Company Analysis - Chart Industries (GTLS) - Chart Industries anticipates significant growth for 2024, forecasting sales to rise by 28% to 37% and adjusted EBITDA to grow by 52% to 68% [4] - The company ended 2023 with $130 million generated from operations in Q4 and improved its net leverage ratio from 4.08 in Q1 to 3.35 by year-end [4] - GTLS aims for a mid-2024 net leverage ratio target of 2.5 to 2.9, with a long-term goal of achieving a range of 2 to 2.5 [4] Group 4: Company Analysis - Atkore (ATKR) - Atkore experienced a 4.2% decrease in net sales in Q1 2024 compared to the previous year, totaling $798.5 million, attributed to lower average selling prices and the economic value of solar tax credits [5] - The company projects an average revenue growth of 3.7% per annum over the next three years, which is lower than the 7.8% growth forecast for the US electrical industry [5] - Atkore's P/E ratio of around nine times earnings is significantly lower than its peers, indicating potential undervaluation [6]