Applied Industrial Q4 sales up 5.5%, beat estimates

Overview

• Applied Industrial fiscal Q4 sales rise 5.5% yr/yr, beating analyst expectations

• Net income for fiscal Q4 beats analyst estimates, per LSEG data

• Co issues fiscal 2026 guidance, projecting sales growth of 4% to 7%

Outlook

• Applied Industrial sees fiscal 2026 EPS of $10.00 to $10.75

• Company expects fiscal 2026 sales growth of 4% to 7%

• Applied Industrial anticipates 1% to 4% organic sales growth in fiscal 2026

• Company cites economic and tariff uncertainties impacting demand

Result Drivers

• ACQUISITIONS BOOST - Sales growth driven by a 6.5% increase from acquisitions, offset by a 0.8% negative selling day impact and a 0.4% foreign currency translation impact

• ENGINEERED SOLUTIONS - Segment saw a 1.8% increase in organic daily sales, contributing to overall growth

• LIFO EXPENSES - Q4 results include $2.9 mln of LIFO expense, up from $0.3 mln in the prior-year period, affecting pre-tax results

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

• Wall Street's median 12-month price target for Applied Industrial Technologies Inc is $276.43, about 0.3% above its August 13 closing price of $275.72

• The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 23 three months ago

Press Release: ID:nBw2MHsKXa