Applied Industrial Q4 sales, profit beat on Engineered Solutions strength
AIT•Q4 sales and profit beat estimates
Applied Industrial Technologies said fiscal fourth-quarter sales grew 10.4% year over year, beating analyst expectations.
The U.S. industrial distributor also said fiscal fourth-quarter net income rose 13.2% year over year, topping analyst estimates.
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q4 Sales | Beat | $1.35 bln | $1.29 bln (8 Analysts) |
| Q4 EPS | $3.17 | ||
| Q4 Net Income | Beat | $118.60 mln | $109.39 mln (7 Analysts) |
| Q4 EBITDA | Beat | $177.60 mln | $164.16 mln (4 Analysts) |
| Q4 Operating Income | Beat | $159.31 mln | $147.48 mln (7 Analysts) |
| Q4 Pretax Profit | Beat | $157.79 mln | $144.58 mln (6 Analysts) |
| Q4 Basic EPS | $3.21 | ||
| Q4 Gross Profit | $411.22 mln |
Engineered Solutions strength drove results and outlook
The company said organic sales growth in its Engineered Solutions segment rose 12.9% year over year, helping drive overall fourth-quarter results.
Applied Industrial attributed growth momentum to intensified sales initiatives and favorable end-market conditions. It also cited steady gross margin performance and operating leverage as factors that contributed to expanded EBITDA margins.
The company issued fiscal 2027 guidance for sales growth of 4.0% to 6.5% and EPS of $11.65 to $12.15. It also raised intermediate financial targets to $7 billion in sales and 14% EBITDA margins over five years.
Analyst coverage currently shows an average rating of "buy" on the shares, with 7 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell" recommendations. The median 12-month price target is $355.00, about 0.8% above the August 12 closing price of $352.29. The stock recently traded at 30 times next-12-month earnings versus a P/E of 26 three months ago.
