Atkore Reports Q2 EPS Beat But Revenues Miss Estimates
Atkore Inc (NYSE:ATKR) reported its Q2 earnings results on Tuesday, with EPS of $4.87 coming in better than the Street estimate of $4.27. However, revenue of $895.9 million missed the Street estimate of $909.38 million.
Analysts at RBC Capital said they remain positive on the story and attribute the tepid stock reaction to (1) while completely as expected, the optics of year-over-year declines in pricing/revenues/earnings are not inspiring, (2) there is still no clarity on normalized earnings, (3) slowing in the second derivative of outsized beats/guidance boosts.
Analysts lowered their price target to $163 from $177 while maintaining their Outperform rating.
| Symbol | Price | %chg |
|---|---|---|
| 247540.KQ | 174000 | 0 |
| 267260.KS | 320000 | 0 |
| 010120.KS | 200500 | 0 |
| 066970.KQ | 159400 | 0 |
Atkore Shares Surge 16% Since Q4 Report
Atkore Inc (NYSE:ATKR) shares gained more than 16% since the company’s reported Q4 results on Friday, with EPS of $5.52 coming in better than the Street estimate of $5.03. Revenue was $1.029 billion, beating the Street estimate of $980.34 million.
According to the analysts at RBC Capital, the excitement driving the shares up was all in the upside guidance, quelling any “peak earnings” angst once again. Operating results were mostly in line. Pricing sequentially decelerated to 4.9% growth, matching the analysts’ expectations, and volume inflected to positive.
The analysts raised their price target to $136 from $110.00 while maintaining their Outperform rating.
