Applied Industrial Technologies Q1 sales rise 7.6%
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
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(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.)