Shares of Atkore Inc. (ATKR), a leading manufacturer of electrical products, plummeted 19.79% in the pre-market session on Tuesday, following the company's disappointing first-quarter fiscal 2025 results and lowered full-year guidance.

For the quarter ended December 27, 2024, Atkore reported net sales of $661.6 million, down 17.1% year-over-year and missing analysts' estimates of $680.8 million. Net income slumped 66.5% to $46.3 million, or $1.31 per diluted share, compared to $138.4 million, or $3.61 per share, in the year-ago period.

The steep decline in profitability was driven by a 41.1% drop in gross profit, as gross margins contracted to 25.9% from 36.4% a year earlier. Atkore cited lower average selling prices, increased input costs, and higher freight costs as the primary factors behind the margin compression.

In response to the weaker-than-expected performance, Atkore revised its full-year adjusted EBITDA outlook to be between $375 million and $425 million, significantly lower than its previous guidance of $7.80 to $8.90. The company also cut its adjusted earnings per share forecast to a range of $5.75 to $6.85, well below analysts' expectations of $8.39.

The disappointing results and lowered guidance appear to have rattled investors, leading to the substantial sell-off in Atkore's stock during the pre-market trading session. As of 9:32 AM ET, the company's shares were trading at $74.00, down 19.79% from the previous close.