Atkore International Group (ATKR) Tops Q2 EPS by 96c, Revenues Beat; Offers FY21 EPS Guidance Above Consensus

Atkore International Group (NYSE: ATKR) reported Q2 EPS of $2.79, $0.96 better than the analyst estimate of $1.83. Revenue for the quarter came in at $639.5 million versus the consensus estimate of $556.8 million.

• Net sales of $639.5 million, up 40.4% versus prior year
• Diluted earnings per share increased by $1.78 to $2.58; Adjusted net income per diluted share increased by $1.80 to $2.79
• Net income increased by $85.7 million to $124.9 million; Adjusted EBITDA increased by $106.4 million to $193.4 million
• Full-year Net sales expected to be up 40% - 50% compared to fiscal year 2020
• Full-year Adjusted EBITDA outlook increased to $700 million - $750 million; Full-year Adjusted net income per diluted share outlook increased to $10.00 - $10.70

“Outstanding results in our metal electrical conduit and focused product categories, along with exceptional performance in our PVC electrical conduit business drove another record quarter with significant year over year improvements in earnings," commented Bill Waltz, Atkore President and Chief Executive Officer. “Our team continues to adhere to the Atkore Business System, including particular focus on commercial and operational execution, enabling us to complete timely deliveries despite ongoing, widespread raw materials supply challenges. As we pursue growth organically and inorganically, we are also excited to have completed our acquisition of FRE Composites, which expands our product portfolio into high-quality fiberglass conduit systems and increases our exposure to the infrastructure market."

“To reflect this better-than-expected performance as we continue to take full advantage of a favorable demand and pricing environment, Atkore is raising its outlook for the full year. Across Atkore, we remain focused both on driving results today and investing for the future, and I am grateful to our team for their unmatched focus and commitment to our customers, shareholders and communities."

GUIDANCE:

Atkore International Group sees FY2021 EPS of $10.00-$10.70, versus the consensus of $5.86.

Based on market trends and Atkore’s continued execution, the Company is increasing its outlook for Net sales, Adjusted EBITDA and Adjusted net income per diluted share for fiscal year 2021. The Company expects Net Sales to be up approximately 40% to 50%, and Adjusted EBITDA to be in the range of $700 to $750 million, up approximately $260 million - $290 million dollars versus the prior outlook. In addition, the Company expects Adjusted net income per diluted share to be in the range of $10.00 - $10.70. This updated outlook reflects Atkore’s expectation that the strong demand and industry supply constraints in the PVC electrical conduit business will continue through the back half of the fiscal year and that they will normalize as we enter the next fiscal year.

In light of these trends and the current environment, the Company is also updating its perspective on fiscal year 2022. The Company expects fiscal year 2022 Adjusted EBITDA to be approximately $400 million - $450 million, which is in line with historical double digit growth rates when compared to fiscal year 2020. The Company notes that this perspective may vary due to changes in assumptions or market conditions and other factors described under “Forward-Looking Statements.”

Reconciliations of the forward-looking full-year 2021 outlook for Adjusted EBITDA and Adjusted net income per diluted share and full-year 2022 outlook for Adjusted EBITDA are not being provided as the Company does not currently have sufficient data to accurately estimate the variables and individual adjustments for such reconciliations.

For earnings history and earnings-related data on Atkore International Group (ATKR) click here.

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