What happened
Shares of Atkore (ATKR 1.11%), a manufacturer with an eclectic collection of electrical, safety, and infrastructure products, rose a touch over 14% at one point in morning trading Monday. The big story here was earnings, which investors clearly liked. Here's a rundown of the important numbers.
So what
Atkore's top line came in at $840.8 million in the fiscal first quarter of 2022. That was up 64.5% compared with the $511.1 million brought in the same quarter of fiscal 2021. Revenue in its larger electrical division (roughly 75% of quarterly sales) advanced by almost 65%. The smaller safety and infrastructure business (the remainder of sales) saw a revenue advance of 60.7%. Put simply, both had a huge quarter compared with the prior year. But the good news didn't stop there. On the bottom line, Atkore's earnings per share increased to $4.58 per share. That's a massive $2.70 per share more than it earned in the fiscal first quarter of 2021. It beat its own internal target for earnings by a wide margin.
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Management also noted that, despite the difficult operating market (likely the inflation and supply chain issues impacting just about every company), Atkore was able to increase margins in both of its divisions. Further, it highlighted strength in foreign sales and improving revenue in the data center market. It also announced the completion of the integration of two acquisitions, Sasco Tubes & Roll Forming and Four Star Industries, which together added new capabilities to the company's portfolio. It was, on the whole, a pretty positive quarterly update.
Now what
In addition to all of that good news, Atkore also increased its full-year guidance for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) and earnings per share. The changes were pretty big, too, with adjusted EBITDA increasing from a range of $650 million to $700 million, when it announced 2021 results in November, to $875 million to $925 million. Earnings guidance increased from a range of $9.20 per share to $10 per share to a much larger $12.80 to $13.60 per share. No wonder investors were in an upbeat mood here.
