We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Applied Industrial (AIT) Q2 Earnings Beat; Sales Down Y/Y
Read MoreHide Full Article
Industrial equipment wholesaler, Applied Industrial Technologies, Inc. (AIT - Free Report) reported better-than-expected results for second-quarter fiscal 2017 (ended Dec 31, 2016).
The company is poised to grow on the back of greater operational efficacy, robust sales and strategic business expansion.
Over the last one month, shares of this Zacks Rank #2 (Buy) stock recorded a return of 6.00% – outperforming 3.27% provided by the Zacks categorized Machine-Tools & Related Products industry.
Revenues and Earnings
Quarterly earnings came in at 61 cents per share, in line with the year-ago tally. However, the bottom line surpassed the Zacks Consensus Estimate of 59 cents.
Net sales during the quarter came in at $608.1 million, down 0.4% year over year. The company stated that the marginal decline was stemmed by unfavorable foreign currency translation and one less selling day.
However, the top line exceeded the Zacks Consensus Estimate of $595 million.
Margins
Applied Industrial Technologies’ cost of sales was $435.7 million, marginally down by 0.3% year over year. Selling, distribution and administrative expenses (including depreciation) came in at $134.8 million, almost flat year over year. Operating margin contracted 10 basis points (bps) year over year to 6.2%.
Balance Sheet & Cash Flow
Exiting the fiscal second quarter, Applied Industrial Technologies had cash and cash equivalents of $62.9 million versus $59.7 million recorded at the end of fiscal 2016. The company’s long-term debt was $323.9 million, marginally down by 0.2%, from fiscal 2016 end.
For the first half of fiscal 2017, the company generated net cash of $45.7 million from its operating activities compared to $33.8 million cash generated in the year-ago period.
In the first six months of fiscal 2017, Applied Industrial Technologies purchased property worth $6.7 million versus $5.7 million property purchased during the first half of fiscal 2016.
Cash used for dividend payment totaled $21.9 million; while roughly $2.4 million was used for repurchasing 52,500 shares in open market.
Applied Industrial Technologies’ board of directors approved a hike of 1 cent per share or 3.6% in the company’s quarterly dividend rate. The revised rate of 29 cents per share will be paid on Feb 28, 2017 to shareholders of record as on Feb 15.
Outlook
Applied Industrial Technologies believes that some headwinds prevailing in the market might hurt its results in the upcoming quarters. Based on the existing market conditions, the company projects earnings within the range of $2.50–$2.60 per share, for fiscal 2017.
Key Picks
Some other favorably placed stocks from the same space are listed below:
ABB Ltd. presently flaunts a Zacks Rank #1 and has an average earnings surprise of 23.50% for the trailing four quarters.
Altra Industrial Motion Corp. also boasts a Zacks Rank #1 and has an average earnings surprise of 8.06% for the past four quarters.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Applied Industrial (AIT) Q2 Earnings Beat; Sales Down Y/Y
Industrial equipment wholesaler, Applied Industrial Technologies, Inc. (AIT - Free Report) reported better-than-expected results for second-quarter fiscal 2017 (ended Dec 31, 2016).
The company is poised to grow on the back of greater operational efficacy, robust sales and strategic business expansion.
Over the last one month, shares of this Zacks Rank #2 (Buy) stock recorded a return of 6.00% – outperforming 3.27% provided by the Zacks categorized Machine-Tools & Related Products industry.
Revenues and Earnings
Quarterly earnings came in at 61 cents per share, in line with the year-ago tally. However, the bottom line surpassed the Zacks Consensus Estimate of 59 cents.
Net sales during the quarter came in at $608.1 million, down 0.4% year over year. The company stated that the marginal decline was stemmed by unfavorable foreign currency translation and one less selling day.
However, the top line exceeded the Zacks Consensus Estimate of $595 million.
Margins
Applied Industrial Technologies’ cost of sales was $435.7 million, marginally down by 0.3% year over year. Selling, distribution and administrative expenses (including depreciation) came in at $134.8 million, almost flat year over year. Operating margin contracted 10 basis points (bps) year over year to 6.2%.
Balance Sheet & Cash Flow
Exiting the fiscal second quarter, Applied Industrial Technologies had cash and cash equivalents of $62.9 million versus $59.7 million recorded at the end of fiscal 2016. The company’s long-term debt was $323.9 million, marginally down by 0.2%, from fiscal 2016 end.
For the first half of fiscal 2017, the company generated net cash of $45.7 million from its operating activities compared to $33.8 million cash generated in the year-ago period.
In the first six months of fiscal 2017, Applied Industrial Technologies purchased property worth $6.7 million versus $5.7 million property purchased during the first half of fiscal 2016.
Cash used for dividend payment totaled $21.9 million; while roughly $2.4 million was used for repurchasing 52,500 shares in open market.
Applied Industrial Technologies’ board of directors approved a hike of 1 cent per share or 3.6% in the company’s quarterly dividend rate. The revised rate of 29 cents per share will be paid on Feb 28, 2017 to shareholders of record as on Feb 15.
Outlook
Applied Industrial Technologies believes that some headwinds prevailing in the market might hurt its results in the upcoming quarters. Based on the existing market conditions, the company projects earnings within the range of $2.50–$2.60 per share, for fiscal 2017.
Key Picks
Some other favorably placed stocks from the same space are listed below:
Apogee Enterprises, Inc. (APOG - Free Report) has an average earnings surprise of 13.24% for the last four quarters and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ABB Ltd. presently flaunts a Zacks Rank #1 and has an average earnings surprise of 23.50% for the trailing four quarters.
Altra Industrial Motion Corp. also boasts a Zacks Rank #1 and has an average earnings surprise of 8.06% for the past four quarters.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>