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Atkore (ATKR) to Report Q4 Earnings: What's in the Offing?

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Atkore International Group Inc. (ATKR - Free Report) is scheduled to release fourth-quarter fiscal 2018 financial numbers, before the opening bell, on Nov 28.

In the last reported quarter, Atkore’s adjusted earnings per share beat the Zacks Consensus Estimate by nearly 3%. Atkore surpassed the Zacks Consensus Estimate in three of the preceding four quarters with average positive surpriseof 24.62%.

Let’s see how things are shaping up prior to this announcement.

Key Factors to Consider

In fiscal fourth quarter, Atkore’s results will likely reflect the benefits from the pass-through of commodity and freight cost Inflation. The company has successfully offset inflation in the first three quarters of this fiscal compared with fiscal 2017. Further, its M&A initiatives are likely to favorably impact fiscal fourth-quarter results.

The Zacks Consensus Estimate for Atkore’s earnings per share is pegged at 72 cents for fiscal fourth-quarter 2018, reflecting year-over-year growth of 106%. The Zacks Consensus Estimate for total sales of $472 million indicates nearly 19% increase from the prior-year quarter.

Atkore expects total cost inflation for fiscal 2018 to be around 50% higher than fiscal 2017 due to the rise in steel, copper and PVC prices, and freight costs. The company is on track to pass-through at least 100% of this increase in fiscal 2018.

Based on this, the company expects adjusted earnings per share for fiscal 2018 to be $2.65-$2.70 and adjusted EBITDA to be $265-$272 million. For its Electrical Raceway segment, Atkore expects volume to be up low-single digit. For the Mechanical Products & Solutions segment, the company expects volume to be up 10% for fiscal 2018.

The Zacks Consensus Estimate for net sales is pegged at $1,830 million and for EPS at $2.13 for fiscal 2018.

Share Price Performance

Shares of the company have lost around 8% compared with the 19% decline recorded by the industry.

Earnings Whispers

Our proven model does not conclusively show that Atkore is likely to beat estimates this quarter. This is because a stock must have the right combination of the two main ingredients — a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. But that is not the case here as you will see below.

Earnings ESP: Atkore has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 72 cents. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank: Atkore currently carries a Zacks Rank #3, which along with an Earnings ESP of 0.00%, makes surprise prediction difficult.

Stocks Poised to Beat Earnings Estimates

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:

Rexnord Corporation (RXN - Free Report) has an Earnings ESP of +1.27% and a Zacks Rank #2. Its shares have gained 15% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Flowserve Corporation (FLS - Free Report) has an Earnings ESP of +0.52% and a Zacks Rank #2. The stock has gained 17% in a year’s time.

Chart Industries, Inc. (GTLS - Free Report) has an Earnings ESP of +1.92% and a Zacks Rank #3. The company’s shares have rallied 35% during the past year.

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