What Happened?
Shares of electrical safety company Atkore (NYSE:ATKR) fell 19.3% in the afternoon session after the company reported weak fourth quarter results. Its full-year EBITDA guidance missed significantly, and its revenue fell short of Wall Street's estimates as both prices and volumes weakened. On the other hand, it was encouraging to see Atkore beat analysts' EPS expectations this quarter. Overall, this was a weaker quarter.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Atkore? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Atkore’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. But moves this big are rare even for Atkore and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 6 months ago when the stock dropped 14.6% on the news that the company reported earnings results. Its EBITDA forecast for the full year missed, and its EPS fell short of Wall Street's estimates. The company cited some of the reasons for the weakness, adding, "The third quarter proved to be more challenging than we initially anticipated due to a limited increase in demand from the summer construction season and an overall soft pricing environment across most of our Electrical business." Overall, this quarter could have been better.
Atkore is down 21% since the beginning of the year, and at $64.31 per share, it is trading 66.8% below its 52-week high of $193.58 from March 2024. Investors who bought $1,000 worth of Atkore’s shares 5 years ago would now be looking at an investment worth $1,554.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free and will only take you a second.