Financial Performance - Net sales for the three months ended September 30, 2024, were $403.7 million, an increase of $7.5 million or 1.9% compared to $396.2 million for the same period in 2023 [103]. - For the nine months ended September 30, 2024, net sales were $1,262.9 million, an increase of $34.5 million or 2.8% compared to $1,228.4 million in 2023 [112]. - Gross margin increased to $111.3 million for the three months ended September 30, 2024, up $8.4 million or 8.2% from $102.9 million in 2023, with a gross margin percentage of 27.6%, an increase of 1.6 percentage points [104][102]. - Gross margin for the nine months ended September 30, 2024, was $355.0 million, an increase of $27.9 million or 8.5% from $327.1 million in 2023, with a gross margin percentage of 28.1%, up 1.5 percentage points [113][111]. - Operating income for the three months ended September 30, 2024, was $63.2 million, an increase of $4.4 million or 7.5% compared to $58.8 million in 2023 [1]. - Net income for the three months ended September 30, 2024, was $43.8 million, representing a $6.2 million increase or 16.5% from $37.6 million in 2023 [1]. - The net income margin improved to 11.5% for the nine months ended September 30, 2024, compared to 11.1% in the prior year [143]. - Diluted earnings per share for Q3 2024 was $0.52, up from $0.45 in Q3 2023, representing a 15.6% increase [144]. - Adjusted earnings per share for the nine months ended September 30, 2024, was $1.92, compared to $1.82 for the same period in 2023, reflecting a 5.5% growth [144]. Expenses and Costs - The company incurred approximately $8.9 million in one-time expenses during the three months ended September 30, 2024, and approximately $18.7 million during the nine months ended September 30, 2024, related to becoming a standalone public company [99]. - The company expects to incur one-time expenses of approximately $20 million to $25 million in 2024 in connection with becoming a standalone public company [99]. - Selling, general and administrative expenses were $46.4 million for the three months ended September 30, 2024, an increase of $5.1 million or 12.3% compared to $41.3 million in 2023 [105]. - Research, development, and engineering expenses decreased to $9.7 million for the three months ended September 30, 2024, down $1.4 million or 12.6% from $11.1 million in 2023 [106]. - Interest expense for the nine months ended September 30, 2024, was $31.4 million, an increase of $16.2 million compared to $15.2 million in 2023, primarily due to the timing of borrowings [118]. - Higher working capital requirements resulted in a cash outflow of $81.9 million for the nine months ended September 30, 2024, compared to a cash inflow of $2.0 million in the same period of 2023 [127]. Cash Flow and Capital Expenditures - Net cash provided by operating activities was $85.4 million for the nine months ended September 30, 2024, a decrease of $61.9 million compared to $147.3 million in the same period of 2023 [127]. - Capital expenditures for the nine months ended September 30, 2024, were $38.6 million, representing approximately 3.1% of net sales, compared to $29.6 million or 2.4% of net sales in the prior year [129]. - Capital expenditures for Q3 2024 were $16.4 million, up from $10.5 million in Q3 2023, representing a 56.2% increase [146]. - Adjusted free cash flow for the nine months ended September 30, 2024, was $86.1 million, down from $122.5 million in the same period of 2023, indicating a decrease of 29.6% [146]. - Free cash flow for Q3 2024 was $54.3 million, compared to $47.8 million in Q3 2023, marking a 13.6% increase [146]. Debt and Financing - As of September 30, 2024, total debt was $596 million, a slight decrease from $600 million at December 31, 2023, with a weighted-average term of 2.9 years [134]. - The company borrowed $650 million from a credit agreement upon completion of its IPO to pay Cummins in partial consideration for the Separation [88]. - The company has a revolving credit facility capacity of $400 million as of September 30, 2024, with no outstanding borrowings [122]. - The company has a $600 million term loan facility and a $400 million revolving credit facility, with interest rates tied to SOFR [152]. - A 0.125% change in SOFR would result in a $0.7 million annual impact on interest expense based on outstanding borrowings as of September 30, 2024 [152]. Market Conditions - Aftermarket demand remained depressed in the first nine months of 2024, reflecting soft market conditions, with uncertainty regarding recovery [94]. - Overall supply chain conditions have largely stabilized from a year ago, with minimal disruptions and backorders largely recovered [95]. - Direct material cost pressures have stabilized, but labor impacts continue to affect the company's Selling, general and administrative expenses, which increased during the first nine months of 2024 [97]. - The appreciation of the U.S. dollar against foreign currencies had a slightly unfavorable impact on the company's condensed consolidated results of operations in the first nine months of 2024 [98]. Taxation - The effective tax rate for the three months ended September 30, 2024, was 18.4%, a decrease of 4.7 percentage points from 23.1% in 2023, driven by a change in the mix of earnings among tax jurisdictions [108]. - The effective tax rate decreased to 20.9% for the nine months ended September 30, 2024, down 2.9 percentage points from 23.8% in the prior year, driven by a change in the mix of earnings among tax jurisdictions [121]. - The tax impact of one-time separation costs for Q3 2024 was $1.6 million, slightly lower than $1.7 million in Q3 2023 [144].

Company Performance - Atmus Filtration Technologies (ATMU) reported quarterly earnings of $0.61 per share, exceeding the Zacks Consensus Estimate of $0.52 per share, and up from $0.52 per share a year ago [1] - The earnings surprise for this quarter was 17.31%, following a previous quarter where the company reported earnings of $0.71 per share against an expectation of $0.58, resulting in a surprise of 22.41% [2] - The company posted revenues of $403.7 million for the quarter ended September 2024, which was 1.31% below the Zacks Consensus Estimate, but an increase from $396.2 million in the same quarter last year [3] Stock Performance - Atmus Filtration shares have increased approximately 76.5% since the beginning of the year, significantly outperforming the S&P 500's gain of 25.2% [4] - The current consensus EPS estimate for the upcoming quarter is $0.52, with expected revenues of $406.42 million, and for the current fiscal year, the estimate is $2.34 on revenues of $1.67 billion [8] Industry Outlook - The Pollution Control industry, to which Atmus Filtration belongs, is currently ranked in the bottom 17% of over 250 Zacks industries, indicating potential challenges ahead [9] - The performance of Atmus Filtration's stock may be influenced by the overall outlook for the industry, as historical data shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [9] Future Expectations - The trend of estimate revisions for Atmus Filtration is currently mixed, leading to a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [7] - Investors are encouraged to monitor how estimates for the coming quarters and the current fiscal year may change following the recent earnings report [8]

Financial Performance - Net sales for Q3 2024 were $404 million, a 1.9% increase from $396 million in Q3 2023[3] - GAAP net income was $44 million, or $0.52 diluted earnings per share, compared to $38 million, or $0.45 diluted earnings per share in the same period last year[6] - Adjusted EBITDA was $79 million with an adjusted EBITDA margin of 19.6%, up from $73 million and 18.3% in Q3 2023[5] - Net income for the nine months ended September 30, 2024, was $145.5 million, compared to $136.5 million for the same period in 2023, reflecting an increase of 6.6%[29] - Basic earnings per share for the nine months ended September 30, 2024, were $1.75, up from $1.64 for the same period in 2023, an increase of 6.7%[31] - The company reported a net income margin of 11.5% for the nine months ended September 30, 2024, compared to 11.1% for the same period in 2023[32] Revenue Guidance - The company raised its 2024 revenue guidance to a range of $1,650 million to $1,675 million[2] - Adjusted earnings per share for 2024 is projected to be between $2.35 and $2.50[2] Cash Flow and Operating Activities - Cash provided by operating activities was $71 million, compared to $58 million in Q3 2023[7] - Cash provided by operating activities for the three months ended September 30, 2024, was $70.7 million, an increase of 21.0% compared to $58.3 million for the same period in 2023[35] - For the nine months ended September 30, 2024, cash provided by operating activities totaled $85.4 million, down 42.0% from $147.3 million in 2023[35] Free Cash Flow - Adjusted free cash flow increased to $65 million from $50 million in the same quarter last year[8] - Free cash flow for the three months ended September 30, 2024, was $54.3 million, up 13.6% from $47.8 million in the prior year[35] - The adjusted free cash flow for the nine months ended September 30, 2024, was $86.1 million, a decrease of 29.6% compared to $122.5 million in the same period of 2023[35] Capital Expenditures - The company incurred capital expenditures of $38.6 million for the nine months ended September 30, 2024, compared to $29.6 million for the same period in 2023, an increase of 30.2%[29] - Capital expenditures for the three months ended September 30, 2024, were $16.4 million, representing a 56.2% increase from $10.5 million in the prior year[35] - One-time separation capital expenditures amounted to $5.1 million for the three months ended September 30, 2024, compared to $2.2 million in the same period of 2023[35] Assets and Liabilities - Total assets increased to $1,218.1 million as of September 30, 2024, up from $1,088.6 million at December 31, 2023, representing a growth of 11.9%[26] - Total current liabilities decreased to $368.3 million as of September 30, 2024, from $375.0 million at December 31, 2023, a reduction of 1.8%[26] - Long-term debt decreased to $577.5 million as of September 30, 2024, down from $592.5 million at December 31, 2023, a decline of 2.5%[26] Stock Repurchase - The company repurchased $10 million of common stock under its $150 million share repurchase program[2] - The company repurchased $10.0 million of common stock during the nine months ended September 30, 2024[29] Tax and Margins - The effective tax rate for Q3 2024 was 18.4%[6] - Gross margin was $111 million, representing 27.6% of net sales, compared to 26.0% in Q3 2023[4] Other Costs - Other one-time separation related costs for the nine months ended September 30, 2024, were $26.9 million, with no comparable figure for the previous year[35] - The company experienced one-time working capital inefficiencies associated with the transition from intercompany settlement terms with Cummins to standalone practices[35]

Atmus Filtration Technologies (ATMU) is expected to deliver flat earnings compared to the year-ago quarter on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on November 8, 2024, might help the stock move higher if the ...

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 ...