Atkore Stock Gains After Q1 Earnings Beat, FY22 EPS Outlook Boost

Atkore Inc ATKR reported first-quarter FY22 sales growth of 64.5% year-over-year to $840.8 million, beating the consensus of $768.52 million.
The company attributed the net sales growth to increased average selling prices of $368 million and increased net sales of $10.7 million, reflecting acquisitions of Queen City Plastics and FRE Composites Group.
"We were particularly pleased with the positive volume growth in our international markets led by solid demand and growth from data center projects," said CEO Bill Waltz.
Adjusted EPS improved to $4.58 from $1.88 in 1Q21, beating the consensus of $3.56.
Sales by segments: Electrical $641.68 million (+65.7% Y/Y), and Safety & Infrastructure $200.51 million (+60.7% Y/Y).
The gross margin expanded by 520 bps to 42.2%. The operating income increased to $268.43 million from $119.85 million last year, and the margin expanded by 850 bps to 31.9%.
Adjusted EBITDA increased to $293.01 million from $136.99 million in 1Q21, and margin expanded by 804 bps to 34.9%.
Atkore generated cash from operating activities of $97.19 million, compared to $86.28 million a year ago. Free cash flow was $87.83 million.
The company repurchased $105 million of its common stock during the quarter.
FY22 Outlook: Atkore continues to expect net sales to be up approximately mid-single-digit percentages versus FY21.
It expects Adjusted EBITDA of $875 million - $925 million (prior view $650 million -$700 million) and Adjusted EPS of $12.80 - $13.60 (prior view $9.20 - $10.00) vs. consensus of $9.90.
Price Action: ATKR shares traded higher by 5.61% at $102.00 during the premarket session on Monday.

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