Atkore (NYSE: ATKR ) is a $3.12 billion market cap US-based electrical equipment manufacturer. Over the last five years, it has beaten the S&P 500 ( SPY ) and the industrial sector overall ( XLI ) by some margin. WhileAnalyst’s Disclosure: I/we have a beneficial long position in the shares of ATKR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no busin ...

Company Overview - Atkore produces electrical, safety, and infrastructure solutions, with the majority of sales coming from electrical and related products [3] - The company generated nearly $2 billion in sales before the pandemic, with operating margins increasing from low single digits to low double digits [3] Recent Performance - In 2022, Atkore's revenues doubled to $3.9 billion, and operating margins reached approximately 30% [4] - However, in November 2023, the company reported a 10% decline in full-year sales to $3.52 billion, with operating earnings down nearly 30% to $893 million, translating to margins of 25% [4][5] - The company has seen a significant drop in share value, from a high of $195 in March 2023 to trading in the mid-$80s [4][6] Financial Guidance - Atkore originally guided for flat sales between $3.50 and $3.65 billion for 2024, with EBITDA expected between $900-$950 million [5] - Following a decline in sales, the full-year EBITDA guidance was cut to a midpoint of $777 million, with earnings projected around $14.41 per share [7] Market Conditions - The company has faced challenges due to a softer macro environment and declining prices, particularly in the HDPE market [8] - An unexpected CFO transition occurred during this period of difficulty, and the company has been involved in an antitrust lawsuit related to pricing practices [7][8] Future Outlook - Despite current challenges, Atkore believes in a minimum earnings power of around $10 per share in 2025, with EBITDA projected at $650 million [8] - The safety and infrastructure segment is growing, now making up a quarter of sales, which may provide more stability going forward [8]

RapidEye/E+ via Getty Images Introduction Atkore (NYSE:ATKR) provides industrial piping and electrical cabled conduit for a number of sectors but is largely exposed to US commercial construction generally. Atkore is split into two business units, "Electrical" and "Safety & Infrastructure". Electrical sells electrical cabling such as PVC tubes, metal/armoured cables, HDPE, fittings, nipples and other connectors. In Q3, this segment done $606m in sales vs $217m in Safety & Infrastructure. Thus, top-line e ...

tolgartIntroduction Back in April, when we last covered the electric products manufacturer Atkore Inc. (NYSE:ATKR), its stock was receiving plenty of positive attention, as it was outperforming the equity bellwether, as well as other industrial alternatives quite handsomely. Back then, we had expressed doubts over whether the resilience would linger and advised investors to exercise some caution. Since then, the stock hasn't managed to kick on, and the Q3 results (ATKR follows a September fiscal year) w ...

Call Start: 08:00 January 1, 0000 8:45 AM ET Atkore Inc. (NYSE:ATKR) Q3 2024 Earnings Conference Call August 6, 2024 08:00 ET Company Participants Matthew Kline - Vice President of Treasury & Investor Relations Bill Waltz - President & Chief Executive Officer David Johnson - Chief Financial Officer Conference Call Participants Andrew Kaplowitz - Citigroup Alex Rygiel - B. Riley Deane Dray - RBC Chris Moore - CJS Securities Chris Dankert - Loop Capital Operator Good morning. My name is Mark and I will be you ...

Atkore Inc. (ATKR) came out with quarterly earnings of $3.80 per share, missing the Zacks Consensus Estimate of $4.03 per share. This compares to earnings of $5.72 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -5.71%. A quarter ago, it was expected that this company would post earnings of $3.70 per share when it actually produced earnings of $4.08, delivering a surprise of 10.27%.Over the last four quarters, the company has ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ________________________________________ _____________________ FORM 10-Q _________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 28, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-37793 _____________________________ ...

Part I [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Atkore's Q3 2024 financial results show a 10.5% net sales decrease to $822.4 million, a 38.7% net income drop to $123.4 million, and a 23.7% Adjusted EBITDA decline to $206.1 million, leading to a revised full-year outlook Financial Highlights Summary | Metric | Q3 2024 (in millions) | Q3 2023 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $822.4 | $919.1 | (10.5)% | | Net Income | $123.4 | $201.3 | (38.7)% | | Diluted EPS | $3.33 | $5.13 | (35.1)% | | Adjusted Diluted EPS | $3.80 | $5.72 | (33.6)% | | Adjusted EBITDA | $206.1 | $270.3 | (23.7)% | - The company's performance was impacted by a limited increase in demand from the summer construction season and a soft pricing environment in the Electrical business[2](index=2&type=chunk) - Capital allocation activities included repurchasing **$125 million** in shares and the Board of Directors declaring a quarterly cash dividend of **$0.32 per share**[1](index=1&type=chunk)[2](index=2&type=chunk) Full-Year 2024 Outlook | Full-Year 2024 Outlook | Adjusted Range (in millions) | | :--- | :--- | | Adjusted EBITDA | $772 - $782 | | Adjusted net income per diluted share | $14.30 - $14.52 | [Third Quarter 2024 Performance Analysis](index=1&type=section&id=Third%20Quarter%202024%20Performance%20Analysis) Q3 performance was marked by a significant decline in the Electrical segment due to lower prices and volume, offsetting growth in Safety & Infrastructure, resulting in a 20.3% gross profit decrease and margin contraction [Consolidated Results](index=2&type=section&id=Consolidated%20Results) Consolidated net sales decreased 10.5% to $822.4 million, primarily due to lower selling prices, leading to a 20.3% decline in gross profit and a 38.7% drop in net income - The decrease in net sales was primarily attributed to decreased average selling prices (**$87.5 million**), the increased economic value of solar tax credits transferred to customers (**$7.2 million**), and a slight decrease in sales volume (**$1.2 million**)[4](index=4&type=chunk) - Gross profit decreased mainly due to declines in average selling prices and increased freight costs, which were partially offset by the net benefit of solar credits and lower input costs[5](index=5&type=chunk) Earnings Per Share (Diluted) | Earnings Per Share (Diluted) | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | GAAP EPS | $3.33 | $5.13 | | Adjusted EPS | $3.80 | $5.72 | [Segment Results](index=2&type=section&id=Segment%20Results) The Electrical segment experienced a 14.1% net sales decline and a 31.5% Adjusted EBITDA drop, while the Safety & Infrastructure segment grew 1.6% in sales and 39.8% in Adjusted EBITDA due to higher volumes and solar tax credits - **Electrical Segment:** Net sales decreased by **$99.7 million** (14.1%) due to lower average selling prices (**$80.8 million**) and decreased sales volume (**$18.2 million**). Adjusted EBITDA margin contracted from **37.8%** to **30.1%**[6](index=6&type=chunk)[7](index=7&type=chunk) - **Safety & Infrastructure Segment:** Net sales increased by **$3.4 million** (1.6%) primarily due to higher volumes (**$17.0 million**). Adjusted EBITDA increased by **$8.5 million** (39.8%), with the margin expanding from **10.1%** to **13.8%**, largely due to higher sales volume and the increased net benefit of solar tax credits[8](index=8&type=chunk) [Capital Allocation and Outlook](index=4&type=section&id=Capital%20Allocation%20and%20Outlook) Atkore declared a $0.32 per share quarterly dividend and revised its full-year fiscal 2024 outlook, projecting Adjusted EBITDA between $772 million and $782 million and Adjusted EPS between $14.30 and $14.52 - On July 31, 2024, the Board of Directors declared a quarterly cash dividend of **$0.32 per share** of common stock, payable on August 30, 2024[1](index=1&type=chunk)[9](index=9&type=chunk) Full-Year 2024 Adjusted Outlook | Full-Year 2024 Adjusted Outlook | New Range (in millions) | | :--- | :--- | | Adjusted EBITDA | $772 - $782 | | Adjusted net income per diluted share | $14.30 - $14.52 | [Financial Statements](index=9&type=section&id=Financial%20Statements) This section presents unaudited condensed consolidated financial statements, highlighting year-over-year declines in net income and operating cash flow, a stable balance sheet with increased equity, and significant cash usage for share repurchases [Condensed Consolidated Statements of Operations](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q3 2024, Atkore's Net Sales decreased to $822.4 million, Operating Income fell to $168.5 million, Net Income dropped to $123.4 million, and Diluted EPS declined to $3.33 Condensed Consolidated Statements of Operations (in thousands) | Metric | Three Months Ended June 28, 2024 | Three Months Ended June 30, 2023 | | :--- | :--- | :--- | | Net sales | $822,364 | $919,117 | | Gross profit | $279,655 | $350,801 | | Operating income | $168,452 | $232,590 | | Net income | $123,417 | $201,288 | | Diluted EPS | $3.33 | $5.13 | [Condensed Consolidated Balance Sheets](index=10&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 28, 2024, Atkore's total assets increased slightly to $2.96 billion, total liabilities decreased to $1.40 billion, and total equity rose to $1.56 billion, primarily driven by retained earnings Condensed Consolidated Balance Sheets (in thousands) | Metric | June 28, 2024 | September 30, 2023 | | :--- | :--- | :--- | | Total current assets | $1,520,254 | $1,538,490 | | Total Assets | $2,964,044 | $2,935,009 | | Total current liabilities | $465,836 | $564,604 | | Total Liabilities | $1,402,516 | $1,466,890 | | Total Equity | $1,561,528 | $1,468,119 | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended June 28, 2024, net cash from operations decreased to $350.0 million, with $281.0 million used for share repurchases and $23.2 million for dividends, resulting in free cash flow of $244.9 million Condensed Consolidated Statements of Cash Flows (in thousands) | Metric | Nine Months Ended June 28, 2024 | Nine Months Ended June 30, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $349,957 | $563,748 | | Net cash used in investing activities | ($110,677) | ($205,890) | | Net cash used for financing activities | ($324,595) | ($431,603) | | Decrease in cash and cash equivalents | ($84,457) | ($70,942) | - Significant cash uses in financing activities for the nine months ended June 28, 2024 included **$281.0 million** for common stock repurchases and **$23.2 million** for dividend payments[31](index=31&type=chunk) Free Cash Flow (in thousands) | Metric | Nine Months Ended June 28, 2024 | Nine Months Ended June 30, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $349,957 | $563,748 | | Capital expenditures | ($105,098) | ($122,535) | | **Free Cash Flow** | **$244,859** | **$441,213** | [Non-GAAP Financial Measures and Reconciliations](index=13&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section reconciles non-GAAP measures, showing Q3 2024 Adjusted EBITDA of $206.1 million, Adjusted Net Income of $139.0 million, Adjusted Net Income per diluted share of $3.80, and net debt of $460.6 million [Adjusted EBITDA Reconciliation](index=13&type=section&id=Adjusted%20EBITDA%20Reconciliation) Q3 2024 Net Income of $123.4 million is reconciled to Adjusted EBITDA of $206.1 million, reflecting adjustments for interest, taxes, depreciation, amortization, and stock-based compensation Adjusted EBITDA Reconciliation (in thousands) | Metric | Three Months Ended June 28, 2024 | Three Months Ended June 30, 2023 | | :--- | :--- | :--- | | Net income | $123,417 | $201,288 | | Interest expense, net | $9,944 | $8,682 | | Income tax expense | $34,531 | $18,931 | | Depreciation and amortization | $29,932 | $30,105 | | Stock-based compensation | $4,488 | $5,966 | | Other | $3,813 | $5,289 | | **Adjusted EBITDA** | **$206,124** | **$270,262** | [Segment Information and Adjusted EBITDA Margin](index=14&type=section&id=Segment%20Information%20and%20Adjusted%20EBITDA%20Margin) In Q3 2024, the Electrical segment's Adjusted EBITDA was $182.6 million with a 30.1% margin, while Safety & Infrastructure's Adjusted EBITDA grew to $30.0 million with a 13.8% margin Q3 2024 Segment Performance (in thousands) | Segment | Net sales | Adjusted EBITDA | Adjusted EBITDA Margin | | :--- | :--- | :--- | :--- | | Electrical | $605,962 | $182,568 | 30.1% | | Safety & Infrastructure | $217,024 | $30,042 | 13.8% | [Adjusted Net Income Per Diluted Share Reconciliation](index=15&type=section&id=Adjusted%20Net%20Income%20Per%20Diluted%20Share%20Reconciliation) Atkore's Q3 2024 GAAP Net Income of $123.4 million is reconciled to an Adjusted Net Income of $139.0 million, resulting in an Adjusted Net Income per diluted share of $3.80 Adjusted Net Income Reconciliation (in thousands) | Metric | Three Months Ended June 28, 2024 | | :--- | :--- | | Net income | $123,417 | | Pre-tax adjustments | $20,838 | | Tax effect | ($5,210) | | **Adjusted net income** | **$139,046** | Adjusted Net Income Per Diluted Share | Per Diluted Share | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Net income per diluted share | $3.33 | $5.13 | | Adjusted net income per diluted share | $3.80 | $5.72 | [Net Debt and Trailing Twelve Months (TTM) Adjusted EBITDA](index=16&type=section&id=Net%20Debt%20and%20Trailing%20Twelve%20Months%20%28TTM%29%20Adjusted%20EBITDA) As of June 28, 2024, Atkore's net debt stood at $460.6 million, derived from $764.3 million in total debt and $303.7 million in cash, with TTM Adjusted EBITDA at $863.5 million Net Debt Calculation (in thousands) | Metric | June 28, 2024 | | :--- | :--- | | Total debt | $764,300 | | Less cash and cash equivalents | $303,657 | | **Net debt** | **$460,643** | - The Trailing Twelve Months (TTM) Adjusted EBITDA as of June 28, 2024 was **$863.5 million**[48](index=48&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) This section includes standard legal disclaimers for forward-looking statements, cautioning that actual results may differ from projections due to various risks including economic conditions, industry performance, raw material prices, and competition - The report contains forward-looking statements concerning financial outlook which are not guarantees of future performance and are subject to known and unknown risks[12](index=12&type=chunk) - Key risk factors that could cause actual results to differ include: declines in general business and economic conditions, weakness in the U.S. non-residential construction industry, changes in raw material prices, and intense competition[13](index=13&type=chunk)

Investors in Atkore Inc. (ATKR) need to pay close attention to the stock based on moves in the options market lately. That is because the Oct 18, 2024 $100.00 Call had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mea ...

The market expects Atkore Inc. (ATKR) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on ...