ATMU Earnings Prediction
The chart below shows how ATMU performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ATMU sees a +3.63% change in stock price 10 days leading up to the earnings, and a +3.30% change 10 days following the report. On the earnings day itself, the stock moves by -0.97%. This data can give you a slight idea of what to expect for the next quarter's release.
ATMU Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
406.70M
1.75%
0.74%
Gross Margin
26.33%
-0.34%
-4.50%
Operating Margin
11.56%
-2.53%
-15.31%
Net Margin
9.86%
13.20%
-9.12%
EPS
0.48
14.29%
-7.69%
No Data Available
ATMU Earnings Analysis
Atmus Filtration Technologies Inc Corporation (ATMU.N) Earnings Conference Call
Positive
Q4 Sales Increase: Strong financial performance with Q4 sales of $407 million, a 1.8% increase from $400 million in the same period last year.
Q4 Adjusted EBITDA Growth: Adjusted EBITDA for Q4 was $78 million, representing a margin of 19.1%, up from 17.9% in the prior year, indicating improved operational efficiency.
Sales Performance Growth: For the full year 2024, sales reached $1.67 billion, a 2.5% increase from 2023, showcasing resilience in challenging market conditions.
Adjusted EBITDA Increase: Adjusted EBITDA for the full year was $330 million, up from $302 million in 2023, with an adjusted EBITDA margin increase of 110 basis points to 19.7%.
Stock Repurchase Commitment: The company successfully repurchased $20 million of stock in 2024, demonstrating a commitment to returning capital to shareholders.
We Protect Campaign Launch: The launch of the We Protect campaign aims to enhance brand awareness and is focused on key elements like safeguarding science and championing a cleaner world.
Independence and Growth Potential: The company achieved a significant milestone by becoming fully independent from Cummins, allowing for accelerated growth strategies and market outperformance.
Next-Generation Fuel Filtration: The introduction of the next-generation NanoNet N3 media in fuel filtration highlights Atmus's commitment to innovation and technology leadership.
Market Outperformance Indicator: The company outperformed the aftermarket market by approximately two percentage points in 2024, indicating strong competitive positioning.
Distribution Network Transition: The transition of 95% of the distribution network from Cummins has been completed, enhancing supply chain efficiency and operational independence.
Negative
Earnings Miss Report: Atmus Filtration Technologies Inc. missed earnings expectations with a reported EPS of $0.4802, falling short of the expected $0.53.
Market Conditions and Restructuring: The company is experiencing soft end market conditions in both aftermarket and first fit markets, which has led to restructuring actions in the US and China.
Restructuring Costs Analysis: One-time costs of $4 million were incurred for employee severance due to restructuring, which could indicate underlying operational challenges.
Revenue Impact from Exchange Rates: Despite a slight increase in sales, the company faced foreign exchange headwinds that negatively impacted revenue growth.
Heavy-Duty Market Outlook: The U.S. heavy-duty market is expected to be flat to down 10%, indicating potential challenges in demand.
Medium Duty Market Decline: In the U.S. medium duty market, production is expected to decline by 5% to 15%, driven by a reduction in backlogs, which could affect future sales.
Truck Demand Outlook: Demand for trucks in India is anticipated to be flat to down, with no significant government infrastructure spending ramp-up observed.
China Market Challenges: Weak market conditions are expected to continue in China, where visibility to the market remains low, posing risks to revenue.
Cash Flow Decline: Adjusted free cash flow decreased to $115 million from $152 million in the previous year, indicating potential cash flow challenges.
U.S. Dollar Impact on Revenue: The company expects continued strength in the U.S. Dollar, which will result in approximately 2% revenue headwind for the upcoming year.
ATMU FAQs
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ATMU Earning Call Sentiment
Atmus Filtration Technologies Inc. (NYSE:ATMU) Q4 2024 Earnings Call Transcript
ATMU.N
-3.65%Positive
The earnings call presents a mixed picture. The basic financial performance shows improved EPS but reduced cash flow, hinting at operational challenges. Product updates and market strategy appear positive, with new partnerships and market expansions. However, concerns about pricing, restructuring costs, and weak China demand temper optimism. Financial health is stable, but the lack of clear guidance on tariffs and a cautious shareholder return plan suggest limited upside. Given the market cap, these factors likely lead to a neutral stock price movement.
