Atkore ($ATKR) stock tumbled Tuesday on more than double the usual volume after the company slashed its Fiscal 2025 outlook on softening demand and lower average selling prices.
ATKR stock fell 15% on unusually high volume, with the stock top of the TipRanks Trending Stocks by Unusual Trading Volume charts at the open on Wall Street. About 1.6 million shares changed hands in the first hour of trade, about twice the usual volume. PayPal ($PYPL) vied with ATKR for the top spot after its shares plummeted 10%.
The maker of electrical gear cut its earnings per share guidance for the 2025 Fiscal year ending in September to a range between $5.75 and $6.85, from a prior projection of $7.80 to $8.90 a share.
ATKR, which manufactures everything from steel and fibreglass fittings to electrical wiring and armored cables, cut guidance for the year after Fiscal Q1 sales slid 17% to $661.6 million, well below analyst expectations.
The company posted earnings of $46.3 million, or $1.31 a share, for the first quarter ended in December, down from $138.4 million, or $3.61 a share, a year earlier.
ATKR CEO and President Bill Waltz said the company would continue to focus on its strategy amid a “competitive environment.”
While the Electrical segment and Safety & Infrastructure segment reported a decline in sales, Waltz was keen to emphasize that net sales from the company’s metal framing, cable management and construction services product area increased “mid-single digits” from the prior year.
Is ATKR a Good Stock to Buy?
Overall, Wall Street analysts have a Moderate Buy rating on ATKR stock, based on three Buys and three Holds. The average ATKR price target of $97.20 implies about 45% upside after today’s fall.
