Atkore International (NYSE:ATKR ) Q3 shows topline jump of 24% to $1.06B, beating consensus by $50M.
Increase in net sales is primarily attributed to increased average selling prices across products of $244M which were mostly driven by the PVC pipe and conduit product category within the electrical segment and increased net sales of $13.8M from companies acquired during fiscal 2021 and fiscal 2022.
Increases are offset by decreased sales volume of $43.9M across varying product categories within both the Electrical and the Safety & Infrastructure segments.
Adjusted EBITDA increased by $103.3M versus prior year to $377.5M
Non-GAAP EPS of $6.07 beats consensus by $0.85.
“Our performance demonstrates the strength of the Atkore Business System and our industry-leading solutions, as well as our team’s continued dedication to supporting our customers. We also continued our strong track record of strategically expanding our business in projected high-growth markets by acquiring United Poly Systems to build on our HDPE (high-density polyethylene) conduit portfolio. We are confident that we are well positioned to capitalize on future growth opportunities and deliver excellent service to our customers,” said Bill Waltz, President and CEO.
FY outlook raised: Net sales expected to be up ~32% vs. last year; Adjusted EBITDA outlook increased $1,322M - $1,342M; Adjusted EPS outlook increased to $20.89 - $21.24 (vs. consensus $19.96)
Company estimates FY 2023 Adjusted EBITDA to be ~$800M-900M.
Dig deeper in company presentation.
The stock has gained about 28% over the last one year and has a quant rating of Strong Buy with 4.80 score and highest factor grades given to profitability. Sell side analysts give the stock a Buy rating and an average price target of $127.5
Strong Buy rating on the stock by contributor who said 'ATKR is well positioned for the 2nd half of 2022 and beyond.'; another buy rating on the stock with commentary: 'Atkore has done well for itself recently, with revenue and profitability surging, especially into the current fiscal year.' and 'ATKR is on an acquisition spree to expand its operations and maintain a growth trajectory.'
Previously: Atkore International Non-GAAP EPS of $6.07 beats by $0.85, revenue of $1.06B beats by $50M (Aug. 2)