NYSE$AIT

Applied Industrial Technologies Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Applied Industrial Technologies reported a net sales decrease of 9.9% year-over-year and a net loss of $5.3 million for Q2 2021.

Applied Industrial Technologies reported a 9.9% decrease in net sales to $751.3 million compared to the prior year. The company experienced a net loss of $5.3 million, or $0.14 per share, which includes a non-cash impairment charge and non-routine costs. Excluding these items, adjusted net income was $38.4 million, or $0.98 per share.

  • Net sales decreased 9.9% year-over-year to $751.3 million; organic sales decreased 10.5%.
  • The company reported a net loss of $5.3 million, or $0.14 per share.
  • Adjusted net income was $38.4 million, or $0.98 per share, excluding certain charges and costs.
  • Operating cash flow was $77.5 million, and free cash flow was $72.7 million.

Headline financials

Total Revenue

$751M

Previous: $833M-9.9%
EPS (adj)

$0.98

Previous: $0.97+1.0%
Free Cash Flow

-$5.33M

Previous: $38M-114.0%
Net Income

-$5.33M

Previous: $38M-114.0%
Operating Income

-$2.42M

Previous: $58.7M-104.1%
Gross Profit

$210M

Previous: $241M-13.1%
Cash & Equivalents

$289M

Previous: $128M+125.3%
Total Assets

$2.24B

Previous: $2.42B-7.4%

Revenue & EPS history

Applied Industrial Technologies · Revenue · Quarterly

$751M

Q2 2021-9.9%vs Q2 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Applied Industrial Technologies · $1.1B total across 2 segments · Q1 2023

  • Engineered Solutions
    $550M
  • Service Center
    $550M

Forward guidance

The Company would project fiscal 2021 third quarter sales to decline 3% to 4% year over year on an organic basis. In addition, assuming this sales level, the Company would project selling, administrative and distribution expenses to range between $170 million to $175 million during the fiscal 2021 third quarter.

Tailwinds

  • Underlying sales improvement has continued into January with organic sales month to date down by a mid-single digit percent year over year.
  • Multiple catalysts to expand market potential and accelerate growth opportunities throughout calendar 2021 and beyond.
  • Addressing customers’ break-fix MRO requirements
  • Supporting greater demand for specialized engineered solutions
  • Leveraging multi-channel cross-selling initiatives.

Headwinds

  • General economic uncertainty remains.
  • Fiscal 2021 third quarter sales to decline 3% to 4% year over year on an organic basis.
  • Selling, administrative and distribution expenses to range between $170 million to $175 million during the fiscal 2021 third quarter.
  • Additional expense restoration from temporary cost actions initiated in fiscal 2020 in response to the COVID-19 pandemic.
  • Reduced economic conditions and related business alignment initiatives across a portion of the Service Center segment operations exposed to oil & gas end markets.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+0.2%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+4.1%

Avg return

30 days after

39%

26 / 67 earnings

Positive

+14.6%

Q1 2017

Best reaction

-9.1%

Q3 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+3.0%+1.6%+3.4%
Q2 2026-6.8%-7.5%+0.7%
Q1 2026-0.8%-1.1%-1.0%
Q3 2025-0.6%-5.6%-1.0%
Q2 2025+0.9%+2.5%-0.7%
Q1 2025+3.3%+5.2%+23.8%
Q4 2024+1.3%+0.3%+2.5%
Q3 2024-2.8%-1.5%+5.2%
Q2 2024+0.9%+3.8%+7.5%
Q1 2024-1.0%+0.8%+7.4%
Q4 2023+7.5%+7.4%+10.9%
Q3 2023+3.1%+0.9%-2.7%
Q2 2023+14.5%+16.9%+13.4%
Q1 2023+8.7%+11.1%+13.0%
Q4 2022+7.0%+9.5%+2.7%
Q3 2022+8.8%+11.0%+7.2%
Q2 2022+3.4%+3.2%+4.1%
Q1 2022-2.7%-4.4%-1.1%
Q4 2021-0.5%-1.8%-4.3%
Q3 2021+0.2%+6.0%+2.6%
Q2 2021-8.6%-3.8%+10.9%
Q1 2021+2.5%+6.9%+34.2%
Q4 2020-7.1%-8.0%-16.8%
Q3 2020-9.1%-8.5%+2.4%
Q2 2020-0.6%-1.0%+1.3%
Q1 2020+4.1%+8.9%+11.1%
Q4 2019-2.5%-0.0%+6.3%
Q3 2019-2.5%-3.5%-10.2%
Q2 2019-2.7%-2.4%-0.5%
Q1 2019-0.7%-1.2%-3.7%
Q4 2018-1.1%+2.4%+2.7%
Q3 2018-9.1%-9.2%-2.7%
Q2 2018+4.8%+4.6%+3.6%
Q1 2018-1.1%-3.9%-6.3%
Q4 2017+4.3%+2.6%+5.9%
Q3 2017-0.2%+0.5%-3.8%
Q2 2017-2.7%-5.9%-2.0%
Q1 2017+14.6%+15.8%+37.4%
Q4 2016-4.9%-5.0%-2.4%
Q3 2016-0.0%
Q2 2016+2.9%
Q1 2016+3.9%
Q4 2015+5.0%
Q3 2015+0.6%
Q2 2015-0.5%
Q1 2015-2.0%
Q4 2014-2.5%
Q3 2014-1.6%
Q2 2014+9.9%
Q1 2014-8.9%
Q4 2013-5.1%
Q3 2013+8.9%
Q2 2013+2.7%
Q1 2013-2.1%
Q4 2012+8.2%
Q3 2012-0.3%
Q2 2012-4.8%
Q1 2012-7.0%
Q4 2009-6.0%
Q4 2011-6.0%
Q3 2010-1.9%
Q3 2011-1.9%
Q2 2011-1.4%
Q1 2010-0.5%
Q2 2010-0.5%
Q4 2010-0.5%
Q1 2011-0.5%

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