Applied Industrial Technologies, Inc. (NYSE:AIT) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Applied Industrial Technologies, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 1.33% to $0.76 in the quarter versus EPS of $0.75 in the year-earlier quarter.
Revenue: Rose 3.3% to $640.5 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Applied Industrial Technologies, Inc. reported adjusted EPS income of $0.76 per share. By that measure, the company met the mean analyst estimate of $0.76. It missed the average revenue estimate of $649.73 million.
Quoting Management: Applied’s Chief Executive Officer Neil A. Schrimsher said, “We marked the Company’s 90th year of strength in distribution with a record performance in fiscal 2013. Despite some macroeconomic headwinds that moderated sales growth for most of the year, our consistent operating discipline enabled us to translate 3.7% sales growth into a 9.4% increase in earnings per share and a 7.2% operating margin, up from 7.1% last year. Shareholders’ equity increased 13.0% to $759.6 million compared with $672.1 million at the prior year’s end.”
Key Stats (on next page)…
Revenue increased 3.03% from $621.65 million in the previous quarter. EPS increased 10.14% from $0.69 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.75 to a profit $0.74. For the current year, the average estimate has moved down from a profit of $2.79 to a profit of $2.78 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)