Published on 26 Apr 2024 on Zacks via Yahoo Finance

Applied Industrial (AIT) Q3 Earnings Beat, Revenues Rise Y/Y

Applied Industrial Technologies AIT reported third-quarter fiscal 2024 (ended Mar 31, 2024) earnings of $2.48 per share, which surpassed the Zacks Consensus Estimate of $2.40. The bottom line jumped 4.2% year over year.Net revenues of $1,146 million underperformed the consensus estimate of $1.148 million. The top line inched up 1.3% year over year. Acquisitions boosted the top line by 1.2% while foreign-currency translation had a positive impact of 0.2%. Organic sales increased 0.7% year over year. However, selling days had an adverse impact of 0.8% year over year in the quarter.

Segmental Discussion

The Service Center-Based Distribution segment’s revenues, which contributed 68.9% to net revenues, totaled $789.4 million in the quarter under review. On a year-over-year basis, the segment’s revenues increased 3.6%. Our estimate for segmental revenues was $789.8 million. Organic sales grew 2.6%. Foreign currency translation increased sales by 0.3% while acquisitions boosted sales by 1.5%. However, selling days had an adverse impact of 0.8% year over year. Segmental revenues were driven by benefits from sales process initiatives, solid growth across national accounts and strength in fluid power maintenance, repair and U.S operations.The Engineered Solutions segment’s revenues (formerly Fluid Power & Flow Control segment), which contributed 31.1% to net revenues, totaled $357.0 million in the reported quarter. On a year-over-year basis, the segment’s revenues decreased 3.6%. Our estimate for the Engineered Solutions segment’s revenues in the fiscal third quarter was $377.8 million. Acquisitions boosted the top line by 0.4%. Organic sales decreased 3.2% due to reduced activity across the technology sector. However, selling days had an adverse impact of 0.8% year over year.