This electrical product maker beat analysts’ estimates by $0.21 last quarter.
Atkore International Group Inc. (ATKR)
From Upside
A leading maker of electrical raceway products, Atkore International Group (ATKR) has nothing to do with race cars. The company’s electrical and cable conduit and fittings are used in new
construction and renovation, primarily in nonresidential building and industrial markets.
A vast product lineup and a strong competitive position bode well for growth. Atkore’s products are a staple for the more than 13,000 U.S. electrical distributors that resell its gear. The company estimates that it holds No. 1 or No. 2 positions for most of its products.
Volume growth and acquisitions have fueled strong increases in cash flow and earnings. In addition, robust demand has allowed the company to pass along higher commodity and freight costs to customers, helping lift profit margins.
For fiscal 2018 ended September, the consensus targets per share-profit growth of 92% on a sales increase of 22%. For fiscal 2019, per share earnings are expected to advance 10%, a target that seems conservative, in our view. Atkore, with a Value score of 94, is being initiated as a Buy.
Richard J. Moroney, CFA, Upside, www.upsidestocks.com, 800-233-5922, November 2018