Looking back on electrical systems stocks' Q1 earnings, we examine this quarter's best and worst performers, including Atkore (NYSE:ATKR) and its peers.
Like many equipment and component manufacturers, electrical systems companies are buoyed by secular trends such as connectivity and industrial automation. More specific pockets of strong demand include Internet of Things (IoT) connectivity and the 5G telecom upgrade cycle, which can benefit companies whose cables and conduits fit those needs. But like the broader industrials sector, these companies are also at the whim of economic cycles. Interest rates, for example, can greatly impact projects that drive demand for these products.
The 12 electrical systems stocks we track reported a mixed Q1; on average, revenues beat analyst consensus estimates by 0.6%. while next quarter's revenue guidance was 101% below consensus. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, but electrical systems stocks have shown resilience, with share prices up 7.2% on average since the previous earnings results.
Atkore (NYSE:ATKR) Protecting the things that power our world, Atkore (NYSE:ATKR) designs and manufactures electrical safety products.
Atkore reported revenues of $792.9 million, down 11.5% year on year, falling short of analysts' expectations by 1.9%. Overall, it was a weak quarter for the company with a miss of analysts' organic revenue estimates.
“Atkore achieved solid results in the second quarter having met our projections for Net Sales and exceeding our projections for Adjusted EBITDA and Adjusted Diluted EPS we presented in February,” said Bill Waltz, Atkore President and Chief Executive Officer.
The stock is down 18.6% since reporting and currently trades at $143.60.
Is now the time to buy Atkore? Find out by reading the original article on StockStory, it's free. Best Q1: Encore Wire (NASDAQ:WIRE)Started in a small warehouse in Texas in 1989, Encore Wire (NASDAQ:WIRE) manufactures a range of electrical building wire and cables.
Encore Wire reported revenues of $632.7 million, down 4.2% year on year, outperforming analysts' expectations by 7.3%. It was an impressive quarter for the company with a decent beat of analysts' earnings estimates.
Encore Wire pulled off the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 2.2% since reporting. It currently trades at $289.95.
Weakest Q1: Identiv (NASDAQ:INVE)Emerging from bankruptcy and rebranding in 2013, Identiv (NASDAQCM:INVE) provides digital identity and security solutions for various industries.
Identiv reported revenues of $22.49 million, down 13.5% year on year, falling short of analysts' expectations by 2.2%. It was a weak quarter for the company with a miss of analysts' earnings estimates.
As expected, the stock is down 11.5% since the results and currently trades at $4.47.
Vertiv (NYSE:VRT)Formerly part of Emerson (NYSE:EMR) Electric, Vertiv (NYSE:VRT) manufactures and services infrastructure technology products for data centers and communication networks.
Vertiv reported revenues of $1.64 billion, up 7.8% year on year, in line with analysts' expectations. More broadly, it was a slower quarter for the company with a miss of analysts' earnings estimates and full-year revenue guidance missing analysts' expectations.
Vertiv had the weakest full-year guidance update among its peers. The stock is up 13% since reporting and currently trades at $89.50.
Whirlpool (NYSE:NYSE:WHR)Credited with introducing the first automatic washing machine, Whirlpool (NYSE:WHR) is a manufacturer of a variety of home appliances.
Whirlpool reported revenues of $4.49 billion, down 3.4% year on year, surpassing analysts' expectations by 1.7%. More broadly, it was a very strong quarter for the company with an impressive beat of analysts' volume estimates and a decent beat of analysts' earnings estimates.
Whirlpool scored the highest full-year guidance raise among its peers. The stock is up 5.9% since reporting and currently trades at $111.86.
This content was originally published on Stock Story
