Applied Industrial Technologies (NYSE:AIT – Get Free Report) issued its earnings results on Thursday. The industrial products company reported $3.17 EPS for the quarter, topping the consensus estimate of $2.92 by $0.25, Zacks reports. Applied Industrial Technologies had a return on equity of 21.64% and a net margin of 8.34%.The firm had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.29 billion. During the same quarter in the previous year, the firm earned $2.80 earnings per share. The business’s quarterly revenue was up 10.5% on a year-over-year basis. Applied Industrial Technologies updated its FY 2027 guidance to 11.650-12.150 EPS.
Here are the key takeaways from Applied Industrial Technologies’ conference call:
- Strong fourth-quarter execution: Organic sales grew 10%, led by 13% growth in Engineered Solutions and 8% in Service Centers. EBITDA increased 16% and EPS rose 13%, with EBITDA margins expanding to 13.1% despite higher LIFO costs.
- Demand momentum continued into fiscal 2027, with quarter-to-date organic sales up approximately 7%, positive order trends, and particular strength in automation, fluid power, technology, and data-center-related activity.
- Applied raised its five-year intermediate objectives to $7 billion in sales and a 14% EBITDA margin, citing operating leverage, productivity initiatives, cross-selling, technology investments, acquisition synergies, and secular industrial automation tailwinds.
- The company ended the year with approximately 0.2x net leverage and nearly $2 billion of balance-sheet capacity, supporting continued share repurchases, dividend growth, capital investment, and potentially greater M&A contribution.
- Fiscal 2027 guidance is relatively cautious, calling for sales growth of 4%–6.5%, EBITDA margins of 12.5%–12.8%, and EPS of $11.65–$12.15. Management cited difficult second-half comparisons, geopolitical and trade-policy uncertainty, inflation, higher interest expense, LIFO costs, and potentially lower free cash flow from increased working-capital investment.
Applied Industrial Technologies Trading Up 0.3%
Shares of Applied Industrial Technologies stock traded up $0.90 during trading on Thursday, hitting $353.19. The company’s stock had a trading volume of 293,604 shares, compared to its average volume of 300,724. The company has a debt-to-equity ratio of 0.19, a current ratio of 2.95 and a quick ratio of 1.97. Applied Industrial Technologies has a 52 week low of $238.34 and a 52 week high of $374.80. The stock has a market cap of $13.05 billion, a price-to-earnings ratio of 33.35, a price-to-earnings-growth ratio of 3.04 and a beta of 0.84. The stock has a 50-day moving average price of $335.25 and a two-hundred day moving average price of $302.37.
Applied Industrial Technologies Announces Dividend
More Applied Industrial Technologies News
Here are the key news stories impacting Applied Industrial Technologies this week:
- Positive Sentiment: Quarterly results surpassed forecasts: Applied Industrial Technologies reported fiscal Q4 earnings of $3.17 per share, up from $2.80 a year earlier and above the $2.92 consensus estimate. Revenue reached approximately $1.35 billion to $1.4 billion, compared with expectations of $1.29 billion, representing roughly 10% year-over-year growth. Applied Industrial Technologies Q4 Earnings and Revenues Top Estimates
- Positive Sentiment: Sales growth was broad enough to encourage investors: Quarterly net sales increased 10.4%, including contributions from acquisitions and favorable business conditions. The company also reported an 8.34% net margin and 21.64% return on equity, highlighting solid profitability. Applied Industrial Technologies Reports Fiscal 2026 Results
- Positive Sentiment: Fiscal 2027 outlook was constructive: Management guided to earnings of $11.65-$12.15 per share and revenue of $5.2-$5.3 billion. The EPS midpoint is modestly above the current consensus estimate of $11.82, while the revenue outlook is broadly consistent with expectations. The company also increased its intermediate financial targets. Fiscal 2027 Guidance and Intermediate Financial Targets
- Neutral Sentiment: Investor focus now shifts to execution: The results beat expectations, but the stock was already trading near its 52-week high and at a premium valuation. Future gains may depend on whether Applied Industrial Technologies can deliver the new guidance and sustain double-digit sales growth.
Wall Street Analysts Forecast Growth
A number of research firms recently issued reports on AIT. KeyCorp upped their price objective on shares of Applied Industrial Technologies from $350.00 to $375.00 and gave the stock an “overweight” rating in a research report on Monday, July 13th. Wall Street Zen lowered shares of Applied Industrial Technologies from a “buy” rating to a “hold” rating in a research report on Saturday, May 2nd. Oppenheimer boosted their target price on shares of Applied Industrial Technologies from $300.00 to $350.00 and gave the stock an “outperform” rating in a research note on Wednesday, April 29th. Weiss Ratings reiterated a “buy (b)” rating on shares of Applied Industrial Technologies in a report on Tuesday, July 21st. Finally, DA Davidson began coverage on Applied Industrial Technologies in a report on Tuesday, June 16th. They set a “buy” rating and a $380.00 price objective on the stock. Seven research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat, Applied Industrial Technologies has a consensus rating of “Moderate Buy” and an average price target of $336.71.
Check Out Our Latest Report on Applied Industrial Technologies
Insider Buying and Selling
In other Applied Industrial Technologies news, Director Madhuri A. Andrews sold 3,845 shares of Applied Industrial Technologies stock in a transaction dated Thursday, June 18th. The stock was sold at an average price of $329.89, for a total transaction of $1,268,427.05. Following the transaction, the director directly owned 4,951 shares of the company’s stock, valued at approximately $1,633,285.39. The trade was a 43.71% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 1.60% of the company’s stock.
Institutional Trading of Applied Industrial Technologies
Several institutional investors have recently added to or reduced their stakes in the stock. Goldman Sachs Group Inc. lifted its position in shares of Applied Industrial Technologies by 4.1% in the 1st quarter. Goldman Sachs Group Inc. now owns 381,187 shares of the industrial products company’s stock worth $85,897,000 after purchasing an additional 14,926 shares during the period. Empowered Funds LLC bought a new position in Applied Industrial Technologies during the first quarter worth $318,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in Applied Industrial Technologies by 12.4% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 98,348 shares of the industrial products company’s stock valued at $22,162,000 after buying an additional 10,863 shares during the period. Focus Partners Wealth boosted its position in Applied Industrial Technologies by 4.5% during the first quarter. Focus Partners Wealth now owns 1,341 shares of the industrial products company’s stock valued at $302,000 after acquiring an additional 58 shares during the last quarter. Finally, M&T Bank Corp bought a new stake in Applied Industrial Technologies during the second quarter valued at $217,000. 93.52% of the stock is currently owned by institutional investors.
About Applied Industrial Technologies
Applied Industrial Technologies, listed on the New York Stock Exchange under the symbol AIT, is a leading distributor of industrial products and services. The company offers a comprehensive range of bearings, power transmission components, fluid power products, industrial rubber products, and automation solutions. Through its network of distribution centers and branch locations, Applied Industrial Technologies serves diverse end markets including manufacturing, oil and gas, mining, food and beverage, and wastewater treatment.
Founded in 1923 and headquartered in Cleveland, Ohio, Applied Industrial Technologies has grown through a combination of organic expansion and strategic acquisitions.
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