Atkore Inc. Reports Fiscal 2024 Full-Year and Fourth Quarter Financial Results
Atkore Inc. (NYSE: ATKR) announced its financial results for the fourth quarter and full-year fiscal 2024, ending September 30, 2024.
Key Financial Metrics
| Financial Metric | Q4 2024 | Q4 2023 | Change | Consensus Estimate | FY 2024 | FY 2023 | Change | Consensus Estimate |
|---|---|---|---|---|---|---|---|---|
| Net Sales | $788.3 million | $869.9 million | -9.4% | $748.32 million | $3,202.1 million | $3,518.8 million | -9.0% | $3.16 billion |
| Net Income per Diluted Share (GAAP) | $2.02 | $3.63 | -44.4% | N/A | $12.69 | $17.27 | -26.5% | N/A |
| Adjusted Net Income per Diluted Share | $2.43 | $4.21 | -42.3% | $2.47 | $14.48 | $19.40 | -25.3% | $14.48 |
The results indicate a decline in net sales and profitability largely attributed to a decrease in average selling prices and economic value adjustments related to solar tax credits. However, the company's performance exceeded the Wall Street consensus for the current quarter regarding revenue estimates.
Revenue Performance by Segment
| Segment | Q4 2024 Sales | Q4 2023 Sales | Change |
|---|---|---|---|
| Electrical | $564.5 million | $649.8 million | -13.1% |
| Safety & Infrastructure | $224.5 million | $220.2 million | +1.9% |
The Electrical segment saw a significant decline primarily due to lower average selling prices, offset partially by higher sales volumes. Meanwhile, the Safety & Infrastructure segment experienced slight growth driven by increased volumes, offset by lower pricing.
Key Developments and Operational Highlights
- Annual volume growth of 3.5% in fiscal 2024.
- Cash flow generation and capital allocation remained key strengths, with 75% of operating cash returned to shareholders.
- Declared a quarterly cash dividend of $0.32 per share, payable on December 16, 2024.
- Completed $381.0 million in share repurchases.
Comments from Company Officers
Bill Waltz, Atkore President and CEO, expressed pride in the strategic initiatives aimed at strengthening the company for long-term growth. He highlighted Atkore’s focus on cash flow generation and capital allocation, stating that significant cash was returned to shareholders. Waltz also acknowledged challenges due to market conditions but emphasized opportunities in secular trends and the company's readiness to adapt.
Dividends and Share Repurchase Program
The company declared a quarterly cash dividend of $0.32 per share. Additionally, a share repurchase plan allowed for the repurchase of $381.0 million in outstanding stock during fiscal 2024, with $428.1 million authorization remaining.
Forward Guidance
The company provided guidance for fiscal 2025, with net sales expected in the range of $2.9 - $3.2 billion, Adjusted EBITDA between $475 - $525 million, and adjusted net income per diluted share projected between $7.80 - $8.90.
Stock Price Movement
Following the earnings release, Atkore's stock experienced a decline of approximately 2.51%.
Overall , Atkore's fiscal 2024 results reflected challenges primarily from average selling prices while reinforcing their financial discipline through capital returns to shareholders and strategic initiatives preparing the company for future opportunities.
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