Applied Industrial Technologies Q4 Profit Jumps As Revenue Grows; 2023 EPS Above View

Applied Industrial Technologies (AIT), a value-added distributor and technical solutions provider of industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies, on Thursday reported a spurt in net income for the fourth quarter on more-than-expected revenues.

Net income for the period was $79.1 million or $2.02 per share as compared to $59.2 million or $1.51 per share in the prior period.

Operating income also increased to $109.2 million, as compared to $81.1 million in the corresponding period of the previous year.

EBITDA moved up to $119.95 million, from $94.82 million in the year-ago period.

Net Sales for the quarter increased to $1.06 billion as compared to $895.9 million in the prior period.

3 analysts polled by Thomson Reuters were expecting the company to report revenues of $977.43 million.

The company also introduced fiscal 2023 EPS guidance in the range of $6.65 to $7.30 based on sales growth of 3% to 7% and EBITDA margins of 10.8% to 11.1%. Three analysts polled by Thomson Reuters are expecting the same to be $6.61.

Applied Industrial now targets sales of over $5 billion and EBITDA margins of over 12% and expects to achieve these targets within the next five years or sooner.

The company also said it was on track to achieve the prior EBITDA margin goal of 11% sooner than expected.

Shares of Applied Industrial Technologies are currently trading in pre-market at $106.04, the closing level of Wednesday.

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