HARVEY, Ill. - Atkore Inc. (NYSE: ATKR), a leading manufacturer of electrical products, reported its fiscal 2024 second-quarter earnings with a mixed outcome that saw the company beating earnings per share (EPS) estimates but falling short on revenue expectations.
For the quarter ended March 29, 2024, Atkore announced an adjusted EPS of $4.08, surpassing the analyst estimate of $3.75 by $0.33. However, revenue for the quarter was reported at $792.9 million, which did not meet the consensus estimate of $812.48 million, marking an 11.5% decline compared to the same period last year.
The company's performance led to a stock price decrease of 3.6%.
Atkore's President and CEO, Bill Waltz, acknowledged the solid results for the quarter, meeting projections for net sales and exceeding expectations for adjusted EBITDA and adjusted diluted EPS. Despite a 6% organic volume growth for the first half of the year, the second quarter saw a 1% decline. Waltz attributed the company's robust performance to effective capital deployment, including over $150 million in stock repurchases year to date in fiscal 2024.
Looking ahead, Atkore has adjusted its full-year outlook for fiscal 2024, with an adjusted EPS guidance range of $16.00 to $17.00, slightly below the analyst consensus of $17.01. This adjustment reflects challenges impacting the company's HDPE and solar-related initiatives. Despite these headwinds, Waltz expressed confidence in Atkore's team, product portfolio, and strategy, which are supported by secular tailwinds.
The company's net income saw a 20.8% decrease to $138.0 million for the quarter, primarily due to lower gross profit, which was affected by declines in average selling prices and the economic value of solar tax credits. Adjusted EBITDA also experienced a 23.2% decrease to $211.9 million. The Electrical segment's net sales dropped by 13.2% to $590.8 million, while the Safety & Infrastructure segment saw a 5.9% decrease to $202.4 million.
Atkore's board of directors declared a quarterly cash dividend of $0.32 per share of common stock, maintaining its commitment to shareholder returns. Despite the revenue miss and the slight downward stock movement, Atkore's leadership remains optimistic about the future and is focused on navigating the current market challenges.
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