Applied Industrial Technologies Q1 sales rise 7.6%

By Reuters News


Overview

  • US industrial distributor's fiscal Q1 sales rose 7.6% yr/yr, in line with analysts' expectations

  • Net income for rose 12.7%, beating analysts' expectations, while EBITDA slightly missed estimates

  • Company maintained FY sales growth and EBITDA margin guidance, and raised EPS forecast


Outlook

  • Company raises FY27 EPS guidance to $11.70-$12.20 from $11.65-$12.15

  • Company maintains FY27 sales growth guidance of 4.0%-6.5% and EBITDA margin of 12.5%-12.8%

  • Applied says organic sales in October up about 10% year over year


Result Drivers

  • ENGINEERED SOLUTIONS SEGMENT - Co said segment drove strong organic sales growth and positive order momentum

  • SERVICE CENTER SEGMENT - Co said segment sales growth improved through the quarter with positive trends into October

  • MARGIN INITIATIVES - Co said gross margin initiatives, cost control and channel execution helped expand EBITDA margins


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 Sales

Meet

$1.29 bln

$1.29 bln (8 Analysts)

Q1 EPS

$2.97

Q1 Net Income

Beat

$110.40 mln

$108.05 mln (6 Analysts)

Q1 EBITDA

Slight Miss*

$160.30 mln

$161.19 mln (3 Analysts)

Q1 Operating Income

Slight Miss*

$143.59 mln

$143.61 mln (6 Analysts)

Q1 Pretax Profit

Slight Beat*

$140.94 mln

$140.38 mln (5 Analysts)

Q1 Basic EPS

$3.01

Q1 Gross Profit

$392.21 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

  • Wall Street's median 12-month price target for Applied Industrial Technologies, Inc. is $390.00, about 20.1% above its October 26 closing price of $324.68

  • The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 29 three months ago


Reuters Recommended Reads

  • Oct 26 - Simpson Manufacturing Q3 sales beat estimates, aided by pricing actions

  • Oct 26 - Nucor beats Q3 sales estimates on steel mills unit growth

  • Oct 26 - Custom Truck One Source misses Q3 revenue estimates, raises FY adjusted EBITDA outlook


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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