NYSE$AIT

Applied Industrial Technologies Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Net sales increased by 16.7% year-over-year, with a 16.4% increase on an organic daily basis, and net income reached $57.0 million, or $1.46 per share.

Applied Industrial Technologies reported strong second-quarter results with significant increases in sales, EBITDA, and EPS compared to the prior year. The company raised its fiscal year 2022 guidance for sales, EBITDA margins, and EPS.

  • Net sales increased by 16.7% year-over-year to $876.9 million.
  • Organic daily sales increased by 16.4%.
  • Net income was reported at $57.0 million, or $1.46 per share.
  • Fiscal year 2022 guidance was raised for sales, EBITDA margin, and EPS.

Headline financials

Total Revenue

$877M

Previous: $751M+16.7%
EPS (adj)

$1.55

Previous: $0.98+58.2%
EBITDA

$92.6M

No prior period
Free Cash Flow

$57M

Previous: -$5.33M+1169.1%
Net Income

$57M

Previous: -$5.33M+1169.1%
Operating Income

$78.2M

Previous: -$2.42M+3327.8%
Gross Profit

$258M

Previous: $210M+23.0%
Cash & Equivalents

$155M

Previous: $289M-46.4%
Total Assets

$2.23B

Previous: $2.24B-0.7%

Revenue & EPS history

Applied Industrial Technologies · Revenue · Quarterly

$877M

Q2 2022+16.7%vs Q2 2021
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

The Company is raising guidance for fiscal 2022 and now projects EPS of $5.70 to $5.90, sales growth of 11.5% to 12.5% including 10.5% to 11.5% on an organic basis, and EBITDA margins of 10.1% to 10.3%.

Tailwinds

  • EPS of $5.70 to $5.90.
  • Sales growth of 11.5% to 12.5%.
  • Organic sales growth of 10.5% to 11.5%.
  • EBITDA margins of 10.1% to 10.3%.
  • Organic sales month to date in January are up by a high single-digit percent year over year.

Headwinds

  • Supply chain challenges.
  • Inflationary challenges.
  • COVID-19 related challenges.
  • Guidance does not assume contribution from potential future acquisitions.
  • More difficult comparisons

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 2022

Historical avgQ2 2022

+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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