Stock Story -
Industrial products distributor Applied Industrial Technologies (NYSE:AIT) will be reporting earnings tomorrow before the bell. Here’s what you need to know.
Applied Industrial beat analysts’ revenue expectations by 1.3% last quarter, reporting revenues of $1.15 billion, up 1.3% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ organic revenue estimates but a miss of analysts’ earnings estimates.
Is Applied Industrial a buy or sell going into earnings? Find out by reading the original article on StockStory, it’s free.
This quarter, analysts are expecting Applied Industrial’s revenue to grow 2.4% year on year to $1.19 billion, slowing from the 9.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.51 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Applied Industrial has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 3.8% on average.
Looking at Applied Industrial’s peers in the engineered components and systems segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Graham Corporation delivered year-on-year revenue growth of 5%, meeting analysts’ expectations, and Arrow Electronics reported a revenue decline of 19%, topping estimates by 5.7%. Graham Corporation traded down 1.3% following the results while Arrow Electronics was up 1.7%.
Read the full analysis of Graham Corporation’s and Arrow Electronics’s results on StockStory.
Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed inflation signals have led to uncertainty around rate cuts, and while some of the engineered components and systems stocks have fared somewhat better, they have not been spared, with share prices down 8.3% on average over the last month. Applied Industrial is down 6.3% during the same time and is heading into earnings with an average analyst price target of $216.3 (compared to the current share price of $197.43).
