Applied Industrial (AIT) Q4 Results: What to Look For

Applied Industrial Set to Release Earnings Report

Applied Industrial (NYSE:AIT), a leading distributor of industrial products, is scheduled to announce its latest earnings results this Tuesday before the market opens. Here’s what investors should keep an eye on.

In the previous quarter, Applied Industrial surpassed Wall Street’s revenue projections by 1.1%, posting $1.2 billion in sales—a 9.2% increase compared to the same period last year. The company also exceeded expectations for both EBITDA and adjusted operating income, marking a robust performance.

Market analysts anticipate that Applied Industrial will report a 9.2% year-over-year revenue increase this quarter, reaching $1.17 billion. This would mark an improvement from the flat revenue seen in the same quarter last year. Adjusted earnings per share are forecasted at $2.50.

Total Revenue Overview

Analyst estimates for the company have remained steady over the past month, indicating expectations for consistent performance as earnings approach. Notably, Applied Industrial has fallen short of revenue estimates three times in the past two years.

Industry Peers: Recent Performance

Several companies in the industrial machinery sector have already released their Q4 results, offering insight into potential trends. Worthington reported a 19.5% year-over-year revenue increase, outpacing analyst forecasts by 5.4%. GE Aerospace also posted strong results, with revenues climbing 17.6% and beating estimates by 13.9%. Despite these positive numbers, Worthington’s stock declined by 2.5% after its report, while GE Aerospace shares dropped 7.7%.

The industrial machinery sector has experienced positive momentum recently, with average share prices rising 9.2% over the past month. Applied Industrial’s stock has gained 6.4% during this period. Heading into earnings, the company’s average analyst price target stands at $305.83, compared to its current price of $280.14.

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