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Applied Industrial (AIT) Q4 Earnings & Revenues Beat, Up Y/Y
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Applied Industrial Technologies, Inc. (AIT - Free Report) reported better-than-anticipated results for fourth-quarter fiscal 2018 (ended June 2018).
Earnings/Revenues
Quarterly adjusted earnings came in at $1.03 per share, up 32.1% year over year. The bottom line also outpaced the Zacks Consensus Estimate of $1.01.
Net sales in the reported quarter were $898 million, up 31.7% year over year. The top line also surpassed the Zacks Consensus Estimate of $880 million. Notably, revenues improved 9.3%, year over year, organically.
Segmental Break-Up
Revenues in the Service Center Based Distribution segment came in at $621 million, up 10.3% year over year. Also, the Fluid Power Businesses segment’s aggregate sales came in at $277 million, surging 134.7% year over year.
Adjusted earnings in fiscal 2018 were $3.74 per share, up 31.7% year over year. Net sales in fiscal 2018 were $3,073.3 million, up 18.5% year over year.
Applied Industrial Technologies, Inc. Price, Consensus and EPS Surprise
Cost of sales in the reported quarter was $634 million, up 30.6% year over year. Gross profit margin in the fiscal fourth quarter was 29.4%, up 60 basis points (bps) year over year.
Selling, distribution and administrative expenses totaled $192.9 million, up 30.6% year over year. Operating margin in the quarter was 7.9%, up 80 bps year over year.
Gross and operating margin for fiscal 2018 expanded 40 bps and 50 bps, respectively, on a year-over-year basis.
Balance Sheet/Cash Flow
Exiting the fiscal fourth quarter, Applied Industrial had cash and cash equivalents of $54.2 million, down from $105.1 million recorded as of Jun 30, 2017. Long-term debt stood at $944.5 million, up from $286.8 million recorded at the end of fiscal 2017.
In fiscal 2018, the company generated $147.3 million cash from operating activities, down from $164.6 million recorded in the comparable period last fiscal. Property purchases totaled $23.2 million, up from $17 million recorded in the year-ago tally.
Outlook
Applied Industrial is poised to grow on the back of benefits from the FCX Performance buyout (January 2018) and strong end-market demand. This Zacks Rank #2 (Buy) company currently anticipates to secure sales growth of 16-18% and earnings of $4.48-$4.68 per share in fiscal 2019.
Altra Industrial Motion Corp. sports a Zacks Rank of 1 (Strong Buy). The company pulled off an average positive earnings surprise of 4.01% over the last four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alamo Group, Inc. (ALG - Free Report) carries a Zacks Rank #2. The stock came up with an average positive earnings surprise of 6.06% over the preceding four quarters.
Apogee Enterprises, Inc. (APOG - Free Report) is another Zacks #2 Ranked company. The stock generated an average positive earnings surprise of 0.88% during the same time frame.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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Applied Industrial (AIT) Q4 Earnings & Revenues Beat, Up Y/Y
Applied Industrial Technologies, Inc. (AIT - Free Report) reported better-than-anticipated results for fourth-quarter fiscal 2018 (ended June 2018).
Earnings/Revenues
Quarterly adjusted earnings came in at $1.03 per share, up 32.1% year over year. The bottom line also outpaced the Zacks Consensus Estimate of $1.01.
Net sales in the reported quarter were $898 million, up 31.7% year over year. The top line also surpassed the Zacks Consensus Estimate of $880 million. Notably, revenues improved 9.3%, year over year, organically.
Segmental Break-Up
Revenues in the Service Center Based Distribution segment came in at $621 million, up 10.3% year over year. Also, the Fluid Power Businesses segment’s aggregate sales came in at $277 million, surging 134.7% year over year.
Adjusted earnings in fiscal 2018 were $3.74 per share, up 31.7% year over year. Net sales in fiscal 2018 were $3,073.3 million, up 18.5% year over year.
Applied Industrial Technologies, Inc. Price, Consensus and EPS Surprise
Applied Industrial Technologies, Inc. Price, Consensus and EPS Surprise | Applied Industrial Technologies, Inc. Quote
Costs/Margins
Cost of sales in the reported quarter was $634 million, up 30.6% year over year. Gross profit margin in the fiscal fourth quarter was 29.4%, up 60 basis points (bps) year over year.
Selling, distribution and administrative expenses totaled $192.9 million, up 30.6% year over year. Operating margin in the quarter was 7.9%, up 80 bps year over year.
Gross and operating margin for fiscal 2018 expanded 40 bps and 50 bps, respectively, on a year-over-year basis.
Balance Sheet/Cash Flow
Exiting the fiscal fourth quarter, Applied Industrial had cash and cash equivalents of $54.2 million, down from $105.1 million recorded as of Jun 30, 2017. Long-term debt stood at $944.5 million, up from $286.8 million recorded at the end of fiscal 2017.
In fiscal 2018, the company generated $147.3 million cash from operating activities, down from $164.6 million recorded in the comparable period last fiscal. Property purchases totaled $23.2 million, up from $17 million recorded in the year-ago tally.
Outlook
Applied Industrial is poised to grow on the back of benefits from the FCX Performance buyout (January 2018) and strong end-market demand. This Zacks Rank #2 (Buy) company currently anticipates to secure sales growth of 16-18% and earnings of $4.48-$4.68 per share in fiscal 2019.
Other Key Picks
Some other top-ranked stocks in the Zacks Industrial Products sector are listed below:
Altra Industrial Motion Corp. sports a Zacks Rank of 1 (Strong Buy). The company pulled off an average positive earnings surprise of 4.01% over the last four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alamo Group, Inc. (ALG - Free Report) carries a Zacks Rank #2. The stock came up with an average positive earnings surprise of 6.06% over the preceding four quarters.
Apogee Enterprises, Inc. (APOG - Free Report) is another Zacks #2 Ranked company. The stock generated an average positive earnings surprise of 0.88% during the same time frame.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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