NYSE$AIT

Applied Industrial Technologies Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Applied Industrial Technologies reported mixed results for Q2 2024, with net sales up slightly but organic sales down, while sustaining gross and EBITDA margin expansion and generating record second quarter cash flow.

Applied Industrial Technologies reported a 1.6% increase in net sales to $1.1 billion for Q2 2024, but organic sales declined by 0.1%. Net income was $91.2 million, or $2.32 per share. The company is updating its fiscal 2024 guidance to EPS of $9.35 to $9.70 and sales growth of 1% to 3%.

  • Net sales increased by 1.6% year-over-year to $1.1 billion.
  • Net income was reported at $91.2 million, or $2.32 per share.
  • Adjusted net income was $88.2 million, or $2.24 per share, up 9.3% year-over-year.
  • The company is updating fiscal 2024 guidance.

Headline financials

Total Revenue

$1.08B

Previous: $1.06B+1.6%
EPS

$2.32

Previous: $2.22+4.5%
Capital Expenditures

-$5.52M

No prior period
Free Cash Flow

$91.2M

Previous: $80.5M+13.4%
Net Income

$91.2M

Previous: $80.5M+13.4%
Operating Income

$115M

Previous: $113M+1.5%
Gross Profit

$317M

Previous: $309M+2.8%
Total Assets

$2.78B

Previous: $2.52B+10.3%

Revenue & EPS history

Applied Industrial Technologies · Revenue · Quarterly

$1.08B

Q2 2024+1.6%vs Q2 2023
Beat estimate in 8 of 15 quarters(53%)
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 updated its fiscal 2024 guidance, projecting EPS of $9.35 to $9.70 on an adjusted basis and sales growth of 1% to 3%.

Tailwinds

  • Potential for reaccelerating sales and earnings growth from easing prior-year comparisons
  • Abating technology sector headwinds
  • Sustained benefits from internal initiatives
  • Technical MRO and capital spending requirements to remain heightened as customers modernize equipment and expand production facilities
  • Multi-year secular growth cycle across North America just beginning

Headwinds

  • Current economic uncertainty
  • Easing end-market demand near term
  • Ongoing inflationary headwinds
  • Ongoing supply chain headwinds
  • January sales trending down by an estimated low single-digit percent on an organic basis over prior-year levels

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 2024

Historical avgQ2 2024

+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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