Atkore Stock Gains After Q4 Beat, Stellar FY22 Outlook

Atkore Inc ATKR reported fourth-quarter sales growth of 93.5% year-over-year to $923.73 million, beating the consensus of $839.38 million.
Sales by segments: Electrical $697.49 million (+98.9% Y/Y), and Safety & Infrastructure $227.36 million (+78.3% Y/Y).
The company attributed the net sales growth to higher average selling prices of $391.3 million and a higher sales volume of $24.8 million within the Electrical and Safety & Infrastructure segments.
The gross margin expanded by 790 bps to 38.7%. The operating income increased to $265.95 million from $84.24 million last year, and the margin expanded by 1,115 bps to 28.8%.
Adjusted EPS improved to $4.39 from $1.18 in 4Q20, beating the consensus of $3.84.
Atkore generated cash from operating activities for the year of $572.9 million, compared to $248.8 million a year ago. Free cash flow of $508.4 million.
Adjusted EBITDA increased to $292.9 million from $98.19 million in 4Q20, and margin expanded by 1,114 bps to 31.7%.
The company approved a new share repurchase authorization of $400 million over the next two years.
The company expects to generate solid cash flow from operating activities and deploy over $1 billion in cash to drive value creation over the next couple of years.
Q1 Outlook: The company expects Adjusted EBITDA of $230 million - $250 million and Adjusted EPS of $3.30 - $3.60 vs. consensus of $1.74.
FY22 Outlook: Atkore expects Adjusted EBITDA of $650 million -$700 million and Adjusted EPS of $9.20 - $10 vs. consensus of $7.29.
Price Action: ATKR shares are trading higher by 8.57% at $111.83 on the last check Thursday.

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