A Look Back at Electrical Systems Stocks' Q1 Earnings: Atkore (NYSE:ATKR) Vs The Rest Of The Pack

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at electrical systems stocks, starting with Atkore (NYSE:ATKR).

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 satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 2% while next quarter’s revenue guidance was 2.8% below.

Luckily, electrical systems stocks have performed well with share prices up 21.9% on average since the latest 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 $701.7 million, down 11.5% year on year. This print exceeded analysts’ expectations by 0.6%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

“Atkore delivered strong second quarter results. We grew organic volume 5% year over year,” commented Bill Waltz, Atkore’s President and Chief Executive Officer.

Interestingly, the stock is up 10.1% since reporting and currently trades at $73.64.

Is now the time to buy Atkore? Access our full analysis of the earnings results here, it’s free.

Best Q1: Acuity Brands (NYSE:AYI)

One of the pioneers of smart lights, Acuity (NYSE:AYI) designs and manufactures light fixtures and building management systems used in various industries.

Acuity Brands reported revenues of $1.18 billion, up 21.7% year on year, outperforming analysts’ expectations by 3.1%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.

The market seems happy with the results as the stock is up 6.9% since reporting. It currently trades at $307.04.

Is now the time to buy Acuity Brands? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: Whirlpool (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 $3.62 billion, down 19.4% year on year, falling short of analysts’ expectations by 1%. It was a softer quarter as it posted full-year EPS guidance missing analysts’ expectations significantly and a significant miss of analysts’ adjusted operating income estimates.

Whirlpool delivered the slowest revenue growth in the group. Interestingly, the stock is up 39.2% since the results and currently trades at $108.11.

Read our full analysis of Whirlpool’s results here.

Kimball Electronics (NASDAQ:KE)

Founded in 1961, Kimball Electronics (NYSE:KE) is a global contract manufacturer specializing in electronics and manufacturing solutions for automotive, medical, and industrial markets.

Kimball Electronics reported revenues of $374.6 million, down 11.9% year on year. This print surpassed analysts’ expectations by 10.8%. It was an exceptional quarter as it also put up a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Kimball Electronics pulled off the biggest analyst estimates beat among its peers. The stock is up 34.1% since reporting and currently trades at $19.75.

Read our full, actionable report on Kimball Electronics here, it’s free.

Hubbell (NYSE:HUBB)

A respected player in the electrical segment, Hubbell (NYSE:HUBB) manufactures electronic products for the construction, industrial, utility, and telecommunications markets.

Hubbell reported revenues of $1.37 billion, down 2.4% year on year. This result came in 1.3% below analysts' expectations. It was a slower quarter as it also produced a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.

The stock is up 13.9% since reporting and currently trades at $412.97.

Read our full, actionable report on Hubbell here, it’s free.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

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