Atkore Inc. (NYSE:ATKR) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that Atkore will make substantially more sales than they'd previously expected. It will be interesting to see if the latest numbers are enough to change investors' appetite for Atkore. Over the past week the stock price has fallen 8.3% to US$104.
After the upgrade, the four analysts covering Atkore are now predicting revenues of US$3.8b in 2022. If met, this would reflect a credible 4.4% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$3.1b in 2022. It looks like there's been a clear increase in optimism around Atkore, given the very substantial lift in revenue forecasts.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Atkore's revenue growth is expected to slow, with the forecast 8.9% annualised growth rate until the end of 2022 being well below the historical 14% p.a. growth over the last five years. Compare this to the 119 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 11% per year. Factoring in the forecast slowdown in growth, it looks like Atkore is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for Atkore this year. They're also forecasting for revenues to grow at about the same rate as companies in the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Atkore.
Analysts are definitely bullish on Atkore, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including concerns around earnings quality. You can learn more, and discover the 1 other risk we've identified, for free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.