Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. While many investors like to look for momen ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Even though momentum is a popular stock cha ...

The Zacks Pollution Control industry is poised for growth from increasing demand for air pollution control products due to rising greenhouse gas emissions and growing public awareness of health-related risks. Stringent regulations and emission standards enacted by countries globally should continue boosting the demand for industry players. However, the increased adoption of renewable sources of energy, with the rising preference for alternative fuels, has marred the outlook of the industry. Tetra Tech, Inc. ...

Core Viewpoint - Atmus Filtration Technologies (ATMU) has shown significant stock performance, with a 9.5% increase over the past month and a 44% gain since the beginning of the year, outperforming both the Zacks Industrial Products sector and the Zacks Pollution Control industry [1] Group 1: Stock Performance - The stock reached a new 52-week high of $34.2 in the previous session [1] - Year-to-date, Atmus Filtration has outperformed the Zacks Industrial Products sector, which increased by 5.8%, and the Zacks Pollution Control industry, which saw a 24.2% return [1] Group 2: Earnings Performance - Atmus Filtration has consistently exceeded earnings expectations, not missing the consensus estimate in the last four quarters [2] - In the latest earnings report on August 2, 2024, the company reported an EPS of $0.71, surpassing the consensus estimate of $0.58, and beat the revenue estimate by 3.72% [2] - For the current fiscal year, earnings are projected at $2.33 per share on revenues of $1.67 billion, reflecting a 0.87% change in EPS and a 2.43% change in revenues [2] - For the next fiscal year, expected earnings are $2.47 per share on $1.71 billion in revenues, indicating a year-over-year change of 6.12% in EPS and 2.82% in revenues [2] Group 3: Valuation Metrics - The stock trades at 14.5X current fiscal year EPS estimates, below the peer industry average of 28.8X [4] - On a trailing cash flow basis, Atmus Filtration trades at 13.1X compared to the peer group's average of 21.6X [4] - The stock has a PEG ratio of 3.87, which does not position it among the top echelon of stocks from a value perspective [4] Group 4: Zacks Rank - Atmus Filtration holds a Zacks Rank of 2 (Buy), supported by rising earnings estimates [5] - The company meets the criteria for selection, as it has a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B [5] - This suggests that Atmus Filtration shares may have further upside potential in the near term [5]

Atmus Filtration Technologies (ATMU) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, ATMU broke through the 20-day moving average, which suggests a short-term bullish trend. The 20-day simple moving average is a well-liked trading tool because it provides a look back at a stock's price over a 20-day period. Additionally, short- term traders find this SMA very beneficial, as it smooths out short-term price trends and shows more trend reversa ...

Investors interested in Industrial Products stocks should always be looking to find the best-performing companies in the group. Has Atmus Filtration Technologies (ATMU) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Industrial Products peers, we might be able to answer that question.Atmus Filtration Technologies is one of 218 individual stocks in the Industrial Products sector. Collectively, these companies sit at #8 in the Zacks Sector Rank ...

Atmus Filtration Technologies Inc. (NYSE:ATMU) Q2 2024 Earnings Conference Call August 2, 2024 11:00 AM ET Company Participants Todd Chirillo - Executive Director, IR Steph Disher - Chief Executive Officer Jack Kienzler - Chief Financial Officer Conference Call Participants Joe O'Dea - Wells Fargo Tami Zakaria - JPMorgan Rob Mason - Baird David Ridley-Lane - Bank of America Jerry Revich - Goldman Sachs Bobby Brooks - Northland Capital Operator Thank you for standing by. And at this time, I would like to wel ...

Second Quarter 2024 Earnings Call August 2, 2024 Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, including, without limitation, those that are based on current expectations, estimates and projections about the industries in which we operate and management's views, plans, objectives, projections, beliefs and assumptions. Forward-looking statements may be ide ...

Financial Performance - Net sales for the three months ended June 30, 2024, were $432.6 million, an increase of $19.0 million or 4.6% compared to $413.6 million in the same period of 2023 [100]. - For the six months ended June 30, 2024, net sales were $859.2 million, an increase of $27.0 million or 3.2% compared to $832.2 million in the same period of 2023 [112]. - Net income for the three months ended June 30, 2024, was $56.2 million, an increase of $10.0 million or 21.6% from $46.2 million in the prior year [100]. - Net income for the six months ended June 30, 2024, was $101.7 million, compared to $98.9 million for the same period in 2023 [144]. - Diluted earnings per share for the six months ended June 30, 2024, was $1.22, compared to $1.19 for the same period in 2023 [146]. - The company reported a net income margin of 11.8% for the six months ended June 30, 2024, compared to 11.9% for the same period in 2023 [144]. Expenses and Costs - The company incurred approximately $3.8 million in one-time expenses during Q2 2024 and $9.8 million for the first half of 2024, with expected one-time expenses of $10 million to $20 million for the full year [97]. - Selling, general and administrative expenses increased due to higher people-related and consulting expenses in the first half of 2024 [96]. - Selling, general, and administrative expenses for the six months ended June 30, 2024, were $92.4 million, an increase of $7.3 million or 8.6% compared to $85.1 million in the same period of 2023 [115]. - Interest expense increased significantly to $10.5 million for the three months ended June 30, 2024, up $6.3 million or 150.0% from $4.2 million in the prior year [107]. - Research, development, and engineering expenses decreased to $10.4 million for the three months ended June 30, 2024, down $1.9 million or 15.4% from $12.3 million in the same period of 2023 [105]. Capital Expenditures - The company expects to incur capital expenditures of approximately $10 million to $20 million in 2024 related to the Separation, primarily for establishing functions previously combined with Cummins [97]. - Capital expenditures for the six months ended June 30, 2024, were $22.2 million, approximately 2.6% of net sales, compared to $19.1 million or 2.3% of net sales in the same period of 2023 [129]. - Capital expenditures for the three months ended June 30, 2024, were $11.6 million, compared to $12.7 million in the same period of 2023, a reduction of 8.7% [149]. Cash Flow - Net cash provided by operating activities was $14.7 million for the six months ended June 30, 2024, a decrease of $74.3 million compared to $89.0 million for the same period in 2023 [127]. - For the three months ended June 30, 2024, cash provided by operating activities was $22.9 million, compared to $46.2 million for the same period in 2023, representing a decrease of 50.5% [149]. - Free cash flow for the three months ended June 30, 2024, was $11.3 million, down from $33.5 million in the prior year, indicating a decline of 66.3% [149]. - Adjusted free cash flow for the three months ended June 30, 2024, was $34.1 million, slightly down from $35.3 million in the same period last year, a decrease of 3.4% [149]. - Adjusted EBITDA for the six months ended June 30, 2024, was $172.7 million, up from $158.3 million in the same period of 2023 [144]. Debt and Financing - As of June 30, 2024, the company had $600 million in outstanding borrowings on a term loan and $400 million available under a revolving credit facility [123]. - The company has a $600 million term loan facility and a $400 million revolving credit facility, with interest rates influenced by the adjusted term SOFR [154]. - A 0.125% change in SOFR would result in an annual impact of $0.8 million on interest expense based on outstanding borrowings as of June 30, 2024 [154]. - The weighted average term of outstanding long-term debt was 3.4 years as of June 30, 2024, with total debt remaining at $600 million [132]. Market and Demand - Approximately 19% of net sales in 2023 were generated through first-fit sales to OEMs, while 81% were from the aftermarket, indicating a strong recurring revenue base [87]. - Aftermarket demand remained depressed in the first half of 2024, with uncertainty regarding recovery in the second half, while first-fit demand was stable [93]. - Overall supply chain conditions have stabilized compared to a year ago, with minimal disruptions and backorders largely recovered in the first half of 2024 [94]. Corporate Structure and Changes - The company was incorporated as a standalone entity on April 1, 2022, and began trading on the NYSE under the symbol "ATMU" on May 26, 2023 [88]. - The full separation from Cummins was completed on March 18, 2024, resulting in the divestiture of Cummins' entire ownership and voting interest in Atmus [90]. Foreign Currency and Risks - The appreciation of the U.S. dollar against foreign currencies had a slightly unfavorable impact on the company's consolidated results in the first half of 2024 [96]. - The company is exposed to foreign currency exchange risks due to its international business presence, which is managed through financial derivative instruments [151]. - Foreign currency forward contracts are utilized to minimize income volatility from remeasurement of net monetary assets and liabilities [152]. - The potential gain or loss from foreign currency contracts, assuming a 10% fluctuation, would not materially impact the financial statements for the three and six months ended June 30, 2024 [152]. Accounting Policies - There have been no material changes to the company's critical accounting policies and estimates from those disclosed in the Annual Report on Form 10-K for the year ended December 31, 2023 [150].

Atmus Filtration Technologies (ATMU) came out with quarterly earnings of $0.71 per share, beating the Zacks Consensus Estimate of $0.58 per share. This compares to earnings of $0.63 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 22.41%. A quarter ago, it was expected that this industrial filtration product company would post earnings of $0.59 per share when it actually produced earnings of $0.60, delivering a surprise of 1.69 ...