Why Is Atkore Stock Soaring Today?

Atkore Inc ATKR reported third-quarter sales growth of 121.8% year-over-year to $853.7 million, beating the consensus estimate of $722.78 million.
Sales by segments: Electrical $661.16 million (+142.9% Y/Y), and Safety & Infrastructure $193.49 million (+70.7% Y/Y).
The increase in net sales is attributed to increased average selling prices of $342.8 million driven by the PVC electrical conduit and fittings product category and increased net sales of $26.7 million due to the acquisitions of Queen City Plastics and FRE Composites Group.
The gross margin expanded by 1,458 bps to 39.7%. The operating income increased by 497.5% Y/Y to $248.73 million, and the margin expanded by 1,830 bps to 29.1%.
Adjusted EPS improved to $3.96 from $0.67 in 3Q20, beating the consensus of $3.07.
Atkore generated cash from operating activities year-to-date of $318.62 million, compared to $156.02 million a year ago. Free cash flow of $284.38 million.
Adjusted EBITDA increased to $274.26 million from $63.72 million in 3Q21, and margin expanded by 1,557 bps to 31.1%.
FY21 Outlook: The company expects Net Sales growth of approximately 60% and Adjusted EBITDA of $855-$875 million.
It expects adjusted EPS of $12.25 - $12.55 vs. a consensus of $10.46.
Additionally, the company also provided its perspective on FY22, and it expects Adjusted EBITDA to be approximately $500 million - $550 million.
Price action: ATKR shares traded higher by 12.54% at $83.44 on the last check Tuesday.

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