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Applied Industrial (AIT) Q4 Earnings & Sales Beat, Up Y/Y
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Industrial equipment wholesaler, Applied Industrial Technologies, Inc. (AIT - Free Report) reported better-than-expected results for fourth-quarter fiscal 2017 (ended Jun 30, 2017).
The company is poised to grow on the back of greater operational efficacy, robust sales and strategic business expansion.
Earnings and Revenues
Quarterly adjusted earnings came in at 78 cents per share, beating the Zacks Consensus Estimate by a penny. Also, the bottom line came in higher than the year-ago tally of 66 cents per share.
Net sales during the quarter came in at $681.5 million, up 7.5% year over year. Organic revenue growth during the quarter was 7.9% year over year. In addition, the top line surpassed the Zacks Consensus Estimate of $659 million.
The company noted that the sturdy revenue performance during the quarter was stemmed by increased acquisition-related volume, which was partially offset by unfavorable foreign currency translation impact.
Adjusted earnings for fiscal 2017 came in at $2.84 per share, higher than $2.37 per share earned in the comparable period last year.
Net sales for fiscal 2017 were $2,593.7 million compared to $2,519.4 million recorded in the year-ago quarter.
Applied Industrial Technologies, Inc. Price, Consensus and EPS Surprise
Cost of sales in the reported quarter was $485.4 million, up 6.5% year over year. Gross profit margin came in at 28.8%, expanding 70 basis points (bps) year over year.
Selling, general and administrative expenses (including depreciation) were $147.9 million compared to $136 million incurred in the year-earlier period.
Operating income in fiscal fourth quarter was $48.2 million, as against $42.4 million recorded in the prior-year quarter.
Goss profit margin for fiscal 2017 came in at 28.4%, advancing 30 bps year over year. Operating income in the fiscal 2017 was $174.6 million compared to $88.8 million recorded in at the end of fiscal 2016.
Balance Sheet & Cash Flow
Exiting the fiscal 2017, Applied Industrial Technologies had cash and cash equivalents of $105.1 million compared with $59.9 million recorded at the end of fiscal 2016. The company’s long-term debt was $286.8 million, down 11.7% from fiscal 2016 end.
For fiscal 2017, the company generated net cash of $164.6 million from its operating activities compared to $162 million cash generated in the year-earlier period.
In fiscal 2017, Applied Industrial Technologies purchased property worth $17 million compared with $13.1 million property purchased at the end of the prior fiscal 2016.
In fiscal 2017, this Zacks Rank #2 (Buy) company purchased 162,500 shares in the open market for $8.2 million. On the other hand, cash used for dividend payment in the fiscal year totaled $44.6 million.
Outlook
Applied Industrial Technologies anticipates to bolster its sales by 3–5% in fiscal 2018 (ending June 2018). Adjusted earnings for fiscal 2018 are projected in the range of $3.00–$3.20 per share.
Other Stocks to Consider
Other top-ranked stocks in the industry are listed below;
Apogee Enterprises, Inc. (APOG - Free Report) has an average positive earnings surprise of 3.42% for the last four quarters and currently carries a Zacks Rank #2.
Deere & Company (DE - Free Report) also holds a Zacks Rank #2 and has a remarkable average positive earnings surprise of 70.41% for the past four quarters.
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Applied Industrial (AIT) Q4 Earnings & Sales Beat, Up Y/Y
Industrial equipment wholesaler, Applied Industrial Technologies, Inc. (AIT - Free Report) reported better-than-expected results for fourth-quarter fiscal 2017 (ended Jun 30, 2017).
The company is poised to grow on the back of greater operational efficacy, robust sales and strategic business expansion.
Earnings and Revenues
Quarterly adjusted earnings came in at 78 cents per share, beating the Zacks Consensus Estimate by a penny. Also, the bottom line came in higher than the year-ago tally of 66 cents per share.
Net sales during the quarter came in at $681.5 million, up 7.5% year over year. Organic revenue growth during the quarter was 7.9% year over year. In addition, the top line surpassed the Zacks Consensus Estimate of $659 million.
The company noted that the sturdy revenue performance during the quarter was stemmed by increased acquisition-related volume, which was partially offset by unfavorable foreign currency translation impact.
Adjusted earnings for fiscal 2017 came in at $2.84 per share, higher than $2.37 per share earned in the comparable period last year.
Net sales for fiscal 2017 were $2,593.7 million compared to $2,519.4 million recorded in the year-ago quarter.
Applied Industrial Technologies, Inc. Price, Consensus and EPS Surprise
Applied Industrial Technologies, Inc. Price, Consensus and EPS Surprise | Applied Industrial Technologies, Inc. Quote
Costs and Margins
Cost of sales in the reported quarter was $485.4 million, up 6.5% year over year. Gross profit margin came in at 28.8%, expanding 70 basis points (bps) year over year.
Selling, general and administrative expenses (including depreciation) were $147.9 million compared to $136 million incurred in the year-earlier period.
Operating income in fiscal fourth quarter was $48.2 million, as against $42.4 million recorded in the prior-year quarter.
Goss profit margin for fiscal 2017 came in at 28.4%, advancing 30 bps year over year. Operating income in the fiscal 2017 was $174.6 million compared to $88.8 million recorded in at the end of fiscal 2016.
Balance Sheet & Cash Flow
Exiting the fiscal 2017, Applied Industrial Technologies had cash and cash equivalents of $105.1 million compared with $59.9 million recorded at the end of fiscal 2016. The company’s long-term debt was $286.8 million, down 11.7% from fiscal 2016 end.
For fiscal 2017, the company generated net cash of $164.6 million from its operating activities compared to $162 million cash generated in the year-earlier period.
In fiscal 2017, Applied Industrial Technologies purchased property worth $17 million compared with $13.1 million property purchased at the end of the prior fiscal 2016.
In fiscal 2017, this Zacks Rank #2 (Buy) company purchased 162,500 shares in the open market for $8.2 million. On the other hand, cash used for dividend payment in the fiscal year totaled $44.6 million.
Outlook
Applied Industrial Technologies anticipates to bolster its sales by 3–5% in fiscal 2018 (ending June 2018). Adjusted earnings for fiscal 2018 are projected in the range of $3.00–$3.20 per share.
Other Stocks to Consider
Other top-ranked stocks in the industry are listed below;
AGCO Corporation (AGCO - Free Report) , which sports a Zacks Rank #1 (Strong Buy) at present, generated an average positive earnings surprise of 39.70% over the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
Apogee Enterprises, Inc. (APOG - Free Report) has an average positive earnings surprise of 3.42% for the last four quarters and currently carries a Zacks Rank #2.
Deere & Company (DE - Free Report) also holds a Zacks Rank #2 and has a remarkable average positive earnings surprise of 70.41% for the past four quarters.
5 Trades Could Profit ""Big-League"" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>