Industrial products distributor Applied Industrial (NYSE:AIT) will be announcing earnings results tomorrow before market hours. Here’s what you need to know.
Applied Industrial beat analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $1.10 billion, flat 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’ adjusted operating income estimates.
Is Applied Industrial a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Applied Industrial’s revenue to be flat year on year at $1.08 billion, slowing from the 1.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.21 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Applied Industrial has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Applied Industrial’s peers in the industrial machinery segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Worthington’s revenues decreased 8.1% year on year, meeting analysts’ expectations, and GE Aerospace reported revenues up 4.5%, topping estimates by 4.4%. Worthington traded up 10.2% following the results while GE Aerospace was also up 4.5%.
Read our full analysis of Worthington’s results here and GE Aerospace’s results here.
There has been positive sentiment among investors in the industrial machinery segment, with share prices up 4.2% on average over the last month. Applied Industrial is up 5.6% during the same time and is heading into earnings with an average analyst price target of $292.86 (compared to the current share price of $259.02).
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