Industrial products distributor Applied Industrial (NYSE: AIT) will be reporting results this Tuesday before market hours. Here’s what you need to know.
Applied Industrial missed analysts’ revenue expectations last quarter, reporting revenues of $1.16 billion, up 8.4% year on year. It was a slower quarter for the company, with a miss of analysts’ adjusted operating income estimates and a slight miss of analysts’ revenue estimates.
Is Applied Industrial a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Applied Industrial’s revenue to grow 5% year on year, improving from the 1.8% increase it recorded in the same quarter last year.
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 multiple times over the last two years.
Looking at Applied Industrial’s peers in the industrial machinery segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Worthington delivered year-on-year revenue growth of 24.4%, beating analysts’ expectations by 8.6%, and Gorman-Rupp reported revenues up 7.7%, topping estimates by 3.5%. Worthington traded down 4.6% following the results while Gorman-Rupp was up 16.4%.
Read our full analysis of Worthington’s results here and Gorman-Rupp’s results here.
There has been positive sentiment among investors in the industrial machinery segment, with share prices up 15% on average over the last month. Applied Industrial is up 13.7% during the same time and is heading into earnings with an average analyst price target of $305 (compared to the current share price of $293.37).
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