Earnings To Watch: Applied Industrial (AIT) Reports Q3 Results Tomorrow

Industrial products distributor Applied Industrial (NYSE:AIT) will be reporting earnings this Tuesday before the bell. Here’s what to look for.

Applied Industrial beat analysts’ revenue expectations by 3.5% last quarter, reporting revenues of $1.22 billion, up 5.5% year on year. It was a strong quarter for the company, with a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ revenue 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, analysts are expecting Applied Industrial’s revenue to grow 7.9% year on year to $1.19 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $2.48 per share.

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

Looking at Applied Industrial’s peers in the industrial machinery segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Worthington delivered year-on-year revenue growth of 18%, beating analysts’ expectations by 1.4%, and GE Aerospace reported revenues up 36.2%, topping estimates by 11.7%. Worthington traded down 11.6% following the results while GE Aerospace was also down 1.6%.

Read our full analysis of Worthington’s results here and GE Aerospace’s results here.

There has been positive sentiment among investors in the industrial machinery segment, with share prices up 3.7% on average over the last month. Applied Industrial’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $303.33 (compared to the current share price of $260.29).

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