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AIT’s fiscal first-quarter performance is expected to have benefited from the strengthening demand environment in technology, metals, refining, chemicals, automation, utilities, aggregates, rubber & plastics, lumber & wood, pulp & paper, plus utilities and mining end-markets. Focus on pricing and cross-selling actions, and growth initiatives are likely to have supported its performance.
Applied Industrial’s August 2021 acquisition of R.R. Floody has strengthened its offerings in the automation technology space, boosting its reach across the U.S. Midwest market. Benefits from the acquisition are expected to get reflected in the company’s top line.
However, industrial supply-chain issues, labor shortages and inflation of raw material costs are likely to have weighed on the company’s bottom line in the to-be-reported quarter. Given the company’s substantial international presence, adverse foreign currency movements are expected to have impacted its top line in the fiscal first quarter.
What Does the Zacks Model Say?
Our proven model does not conclusively predict an earnings beat for Applied Industrial this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Applied Industrial has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.64. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Applied Industrial carries a Zacks Rank #3.
Highlights of Q4 Earnings
Applied Industrial’s fourth-quarter fiscal 2022 adjusted earnings of $2.02 per share surpassed the Zacks Consensus Estimate of $1.68. The bottom line expanded 33.8% year over year. The company’s net sales of $1,061.5 million jumped 18.5% year over year and outperformed the Zacks Consensus Estimate of $974 million. Results benefited from organic sales growth and contribution from acquisitions.
Stocks to Consider
Here are some companies within the broader Industrial Products sector that you may want to consider, as according to our model, these have the right combination of elements to beat on earnings this reporting cycle.
Illinois Tool Works (ITW - Free Report) has an Earnings ESP of +0.33% and a Zacks Rank #3. The company is slated to release third-quarter 2022 results on Oct 25.
Illinois Tool’s earnings surpassed the Zacks Consensus Estimate in three of the preceding four quarters while missing in one. The average beat was 2.8%.
Emerson Electric Co. (EMR - Free Report) has an Earnings ESP of +0.81% and a Zacks Rank #3. The company is scheduled to release fourth-quarter fiscal 2022 (ended Sep 30, 2022) results on Nov 2.
Emerson’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 6%.
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What's in Store for Applied Industrial (AIT) in Q1 Earnings?
Applied Industrial Technologies (AIT - Free Report) is slated to release first-quarter fiscal 2023 (ended Sep 30, 2022) financial numbers on Oct 27, before market open.
The Zacks Consensus Estimate for the company’s fiscal first-quarter earnings has been revised downward by 3% in the past 60 days.
Let’s take a look at the factors that are expected to have influenced Applied Industrial’s performance this earnings season.
Applied Industrial Technologies, Inc. Price and EPS Surprise
Applied Industrial Technologies, Inc. price-eps-surprise | Applied Industrial Technologies, Inc. Quote
AIT’s fiscal first-quarter performance is expected to have benefited from the strengthening demand environment in technology, metals, refining, chemicals, automation, utilities, aggregates, rubber & plastics, lumber & wood, pulp & paper, plus utilities and mining end-markets. Focus on pricing and cross-selling actions, and growth initiatives are likely to have supported its performance.
Applied Industrial’s August 2021 acquisition of R.R. Floody has strengthened its offerings in the automation technology space, boosting its reach across the U.S. Midwest market. Benefits from the acquisition are expected to get reflected in the company’s top line.
However, industrial supply-chain issues, labor shortages and inflation of raw material costs are likely to have weighed on the company’s bottom line in the to-be-reported quarter. Given the company’s substantial international presence, adverse foreign currency movements are expected to have impacted its top line in the fiscal first quarter.
What Does the Zacks Model Say?
Our proven model does not conclusively predict an earnings beat for Applied Industrial this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Applied Industrial has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.64. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Applied Industrial carries a Zacks Rank #3.
Highlights of Q4 Earnings
Applied Industrial’s fourth-quarter fiscal 2022 adjusted earnings of $2.02 per share surpassed the Zacks Consensus Estimate of $1.68. The bottom line expanded 33.8% year over year. The company’s net sales of $1,061.5 million jumped 18.5% year over year and outperformed the Zacks Consensus Estimate of $974 million. Results benefited from organic sales growth and contribution from acquisitions.
Stocks to Consider
Here are some companies within the broader Industrial Products sector that you may want to consider, as according to our model, these have the right combination of elements to beat on earnings this reporting cycle.
Illinois Tool Works (ITW - Free Report) has an Earnings ESP of +0.33% and a Zacks Rank #3. The company is slated to release third-quarter 2022 results on Oct 25.
Illinois Tool’s earnings surpassed the Zacks Consensus Estimate in three of the preceding four quarters while missing in one. The average beat was 2.8%.
Emerson Electric Co. (EMR - Free Report) has an Earnings ESP of +0.81% and a Zacks Rank #3. The company is scheduled to release fourth-quarter fiscal 2022 (ended Sep 30, 2022) results on Nov 2.
Emerson’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 6%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.