Atkore (ATKR) Declined on Worse-Than-Expected Results and Lowered Guidance

In its 4th fourth 2024 capitalist letter, River Road Small-Mid Cap Value Fund emphasized stocks specified arsenic Atkore Inc. (NYSE:ATKR). Atkore Inc. (NYSE:ATKR) manufactures and distributes electrical, mechanical, safety, and infrastructure products and solutions. The one-month instrumentality of Atkore Inc. (NYSE:ATKR) was -5.28%, and its shares mislaid 68.55% of their worth implicit the past 52 week. On April 1, 2025, Atkore Inc. (NYSE:ATKR) banal closed astatine $60.02 per stock with a marketplace capitalization of $2.065 billion.

River Road Small-Mid Cap Value Fund stated the pursuing regarding Atkore Inc. (NYSE:ATKR) successful its Q4 2024 capitalist letter:

"The holding with the lowest publication to progressive instrumentality successful the portfolio during Q3 was Atkore Inc. (NYSE:ATKR), a branded shaper of products that support and framework electrical circuitry (including PVC conduit). ATKR delivered worse-than-expected Q3 2024 results and lowered 2024 EBITDA guidance by -11% owed to higher amounts of imported alloy conduit entering the marketplace and a slower summertime operation season. Steel conduit imports from Mexico person risen sharply implicit the past twelvemonth successful usurpation of existing commercialized agreements. ATKR has mislaid marketplace stock and has chopped pricing successful alloy conduit, which is astir 20% of full ATKR revenues. A Donald Trump medication is apt needed for effectual commercialized enforcement. Weakness successful residential, construction, and inferior extremity markets led to lower-than-expected volumes and pricing. We judge ATKR’s equilibrium expanse remains successful large signifier with nett leverage of lone 0.6x and year-to-date escaped currency travel procreation of $245MM has mostly been utilized to money $281MM of year-to-date stock repurchases. We took nary enactment connected the presumption during the quarter."

A technician connected a ladder inspecting the electrical components of an concern building.

Atkore Inc. (NYSE:ATKR) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge money portfolios held Atkore Inc. (NYSE:ATKR) astatine the extremity of the 4th fourth compared to 36 successful the 3rd quarter. In the fiscal archetypal 4th of 2025, Atkore Inc. (NYSE:ATKR) reported nett income of $662 cardinal and adjusted EBITDA of $99 million. While we admit the imaginable of Atkore Inc. (NYSE:ATKR) arsenic an investment, our condemnation lies successful the content that AI stocks clasp greater committedness for delivering higher returns, and doing truthful wrong a shorter timeframe. If you are looking for an AI banal that is arsenic promising arsenic NVIDIA but that trades astatine little than 5 times its earnings, cheque retired our study astir the cheapest AI stock.