AIT Earnings Prediction
The chart below shows how AIT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, AIT sees a -2.12% change in stock price 10 days leading up to the earnings, and a +4.07% change 10 days following the report. On the earnings day itself, the stock moves by +2.89%. This data can give you a slight idea of what to expect for the next quarter's release.
AIT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.08B
1.59%
-1.65%
Gross Margin
29.44%
1.17%
-0.81%
Operating Margin
10.64%
-0.09%
-3.45%
Net Margin
8.47%
11.59%
-1.17%
EPS
2.32
13.17%
-2.93%
No Data Available
AIT Earnings Analysis
Applied Industrial Technologies Inc Corporation (AIT.N) Earnings Conference Call
Positive
EPS Growth Exceeds Expectations: Earnings per share (EPS) increased by 6.7% year-over-year to $2.39, exceeding expectations and reflecting strong operational performance.
EBITDA Margin Expansion: EBITDA margins expanded by 45 basis points year-over-year to 12.6%, driven by effective cost management and improved gross margins.
EBITDA Margin Achievement: The Engineered Solutions segment achieved an EBITDA margin of over 16% for the first time, with a 115 basis point increase year-over-year, highlighting strong market positioning and operational execution.
Free Cash Flow Performance: Free cash flow for the quarter totaled $89.9 million, representing a conversion rate of 96% relative to net income, and year-to-date free cash flow increased by 34% year-over-year to approximately $212 million.
Quarterly Dividend Increase: A 24% increase in the quarterly dividend was announced, aligning with expectations for greater dividend growth and reflecting strong earnings and cash generation in recent years.
Negative
Sales Decline Analysis: Average daily sales declined 3.4% over the prior year, indicating a continued soft demand environment.
Sales Decline Analysis: Consolidated sales decreased 0.4% over the prior year quarter, with organic sales down 3.4% on a daily basis, reflecting weak market conditions.
Service Centers Sales Decline: Sales in the Service Centers segment declined 1.9% year over year on an organic daily basis, primarily due to reduced MRO spending and lower capital maintenance project activity.
Engineered Solutions Sales Decline: Within the Engineered Solutions segment, organic daily sales decreased 6.3% year over year, driven by ongoing sales weakness across Fluid Power OEM customers.
Sales Trend Decline: January sales are currently trending down mid single digits year over year on an organic basis, indicating a sluggish start to the third quarter.
AIT FAQs
How does AIT typically perform around its earnings report dates?
Is Applied Industrial Technologies Inc (AIT) Q2 2024 Earnings Call Summary positive or negative?
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AIT Earning Call Sentiment
Earnings call transcript: Applied Industrial Technologies Q2 2024 sees EPS rise
AIT.N
-0.53%Positive
The earnings call reflects a positive sentiment with strong financial metrics such as increased EPS, EBITDA, and gross margins. The company announced a 24% dividend increase and share buybacks, both positive for stock price. Despite mixed market demand, the raised EPS guidance and strategic M&A focus indicate optimism. While some operational risks and inflationary pressures exist, the overall outlook and financial health suggest a positive stock price movement in the short term.
