Why Electrical & Infrastructure Company Atkore Stock Is Sliding Today
Portfolio Pulse from Lekha Gupta
Atkore Inc (NYSE:ATKR) reported a Q4 FY23 revenue decline of 15.5% Y/Y to $869.9 million, missing the consensus of $920.4 million. The decline was attributed to lower average selling prices and the economic value of solar tax credits. Adjusted EBITDA fell 28.6% Y/Y, and the adjusted EBITDA margin contracted by 490bps. However, adjusted EPS of $4.21 beat the consensus of $4.08. The company announced a new quarterly dividend program with the first payment expected in CY Q1 2024. Atkore provided FY24 guidance with net sales of $3.50 billion - $3.65 billion and adjusted EPS of $16.00-$17.00, and maintained its FY25 adjusted EPS target of greater than $18.00. Shares fell by 8.3% to $124.
November 17, 2023 | 2:37 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Atkore Inc reported lower than expected Q4 FY23 revenue and a significant decline in adjusted EBITDA, but exceeded EPS estimates. The company also announced a new quarterly dividend program and provided FY24 guidance in line with analyst expectations.
The stock price is likely to go down in the short term due to the significant revenue decline and adjusted EBITDA drop, despite the EPS beat and dividend announcement. The negative reaction is reflected in the 8.3% drop in share price. The announcement of a new dividend program may provide some support, but the immediate market reaction to the earnings miss is likely to have a stronger influence.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100