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Dec 31, 2022
Applied Industrial Technologies Q2 2023 Earnings Report
Reported a strong second quarter with significant sales and earnings growth.
Key Takeaways
Applied Industrial Technologies reported a strong second quarter in fiscal year 2023, with net sales increasing by 20.9% to $1.1 billion and EPS of $2.05, up 40.8% year-over-year. The company is raising its fiscal year 2023 guidance for sales, EBITDA margins, and EPS.
Net sales increased by 20.9% year-over-year to $1.1 billion, with a 21.1% increase on an organic basis.
Net income reached $80.5 million, with earnings per share (EPS) at $2.05, reflecting a 40.8% year-over-year increase.
EBITDA increased by 35.6% year-over-year to $125.5 million.
Fiscal year 2023 guidance was raised for sales, EBITDA margins, and EPS.
Forward Guidance
Applied Industrial Technologies is raising its fiscal 2023 guidance for sales, EBITDA margins, and EPS, incorporating ongoing economic uncertainty, inflationary pressures, and supply chain headwinds.
Positive Outlook
- Sales growth is projected to be 13% to 15%.
- Organic sales are expected to grow by 6% to 10%.
- EBITDA margins are anticipated to be 11.5% to 11.7%.
- EPS is projected to be $8.10 to $8.50.
- Underlying industrial sector fundamentals within North America remain favorable long term.
Challenges Ahead
- Guidance incorporates ongoing economic uncertainty.
- Guidance incorporates inflationary pressures.
- Guidance incorporates supply chain headwinds.
- Order rates are gradually normalizing.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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