Applied Industrial (AIT) Reports Q2: Everything You Need To Know Ahead Of Earnings

Industrial products distributor Applied Industrial (NYSE:AIT) will be reporting results this Thursday before the bell. Here’s what investors should know.

Applied Industrial beat analysts’ revenue expectations last quarter, reporting revenues of $1.25 billion, up 7.3% year on year. It was a strong quarter for the company, with full-year EPS guidance meeting analysts’ expectations and a narrow beat of analysts’ EBITDA estimates.

Is Applied Industrial a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Applied Industrial’s revenue to grow 5.6% year on year, in line with the 5.5% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Applied Industrial has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at Applied Industrial’s peers in the engineered components and systems segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Enpro delivered year-on-year revenue growth of 17.6%, beating analysts’ expectations by 4.7%, and Arrow Electronics reported revenues up 31.8%, topping estimates by 3.4%. Enpro traded down 1.7% following the results while Arrow Electronics was also down 8.4%.

Read our full analysis of Enpro’s results here and Arrow Electronics’s results here.

There has been positive sentiment among investors in the engineered components and systems segment, with share prices up 3.4% on average over the last month. Applied Industrial is up 9% during the same time and is heading into earnings with an average analyst price target of $359.50 (compared to the current share price of $352.48).

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