Atmus Filtration Technologies rises after quarterly beat, raises forecasts and unveils buyback

What happened

Atmus Filtration Technologies (ATMU) rose 9.6% on November 6 after stronger-than-expected third-quarter results, an upgraded outlook and a new $300M share repurchase program.

The company reported quarterly earnings per share of $0.77 versus $0.73 expected and net sales of $510M, a 13.9% increase. Management attributed the sales gain to its purchase of Koch Filter and firmer first-fit demand in U.S. heavy- and medium-duty markets, according to Business Wire and Seeking Alpha.

How big was the move

The stock closed at $50.60 after opening 6.9% above the previous close. Trading volume ran 1.5 times its 20-day average, and the session’s move was 4.5 times a typical daily move for this stock. The gain outperformed the Consumer Cyclical sector median by 10.9 percentage points; the sector fell 1.3% on the day while the S&P 500 rose 0.3%.

With a beta of 0.74, the stock typically moves less than the market, so the jump reflected company-specific news tied to the earnings release.

The technical picture

The stock traded 11.4% above its 20-day moving average and 11.6% above its 50-day moving average, while remaining 4.2% below its 200-day moving average. The 50-day average sits below the 200-day average, a sign of a weak longer-term trend. The Relative Strength Index (14 days) was 69, inside the neutral range between 30 and 70.

Over one month the stock rose 18.7% and over three months it rose 2.0%; over one year it rose 9.8%, which is 1.2 percentage points ahead of the S&P 500. Volatility was 34% annualized over 60 days, higher than 65% of its own readings over five years, and the stock remained 23.9% below the 52-week high.

Those indicators portray a stock that has regained short-term momentum while still lagging a longer-term trend. Short-term traders may view the post-earnings uptick and the relative strength versus recent readings as constructive. Longer-term investors will note the distance below the 200-day average and the elevated volatility relative to its historical range.

Fundamentals and valuation

For the four quarters through September 30, 2026, Atmus reported revenue of $1.96 billion, which grew 13.8% from a year earlier and compared with growth of 13.1% one quarter earlier. Diluted earnings per share for that period were $2.69, which rose 12.1% from a year earlier. Gross margin was 29.0%, up from 28.6% a year earlier, and operating margin was 17.0%, up from 16.4%.

Free-cash-flow margin was 10.6% and return on invested capital was 16.8%. The balance sheet showed net debt of 1.8 times EBITDA, and share count over one year decreased by 1.0%. Those metrics suggest the company is converting sales into profit and cash at steady rates and using cash to reduce shares outstanding while carrying moderate leverage.

Valuation metrics show the stock trading at 18.8 times trailing earnings and 17.1 times expected earnings, with a free-cash-flow yield of 5.6%. Its price to trailing earnings is higher than 69% of its own readings over the past five years; the five-year median is 16.7 times earnings. PromtFinance scores rank Growth at 88 (Strong) and Stability at 84 (Strong), with Value at 45 (Neutral), Quality at 54 (Neutral), Momentum at 45 (Neutral) and Revisions at 72 (Positive). The combination of above-average growth scores and a premium to its historical valuation implies investors are paying for continuing expansion, even as value scores remain muted.

Earnings and analyst expectations

Atmus reported November 6 quarterly earnings per share of $0.77, above the consensus of $0.73, and up from $0.69 a year earlier, with net income of $61M. This marked the tenth consecutive quarter beating estimates and the average surprise over the last four reports was 8.1% above estimates. Typical two-day reactions after recent reports have seen the stock fall 0.3%.

Management raised its 2026 revenue and adjusted earnings forecasts alongside the quarterly release and authorized the new $300M repurchase program, according to Business Wire and MarketBeat. The next report is scheduled for February 12, 2027. Five analysts cover the stock, with a consensus rating of Buy and 60% of ratings at Share rating the stock Buy or Strong Buy. The consensus price target is $56.00, which is 10.7% above the closing price.

What to watch

• February 12, 2027: next earnings report date
• The company’s raised 2026 revenue and adjusted earnings forecasts announced November 6
• New $300M share repurchase program authorized November 6
• Consecutive quarters beating estimates: 10 and average surprise over the last four reports: 8.1% above estimates
• Balance sheet metric: net debt of 1.8 times EBITDA