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Dec 31, 2023
Applied Industrial Technologies Q2 2024 Earnings Report
Applied Industrial Technologies reported mixed results for Q2 2024, with net sales up slightly but organic sales down, while sustaining gross and EBITDA margin expansion and generating record second quarter cash flow.
Key Takeaways
Applied Industrial Technologies reported a 1.6% increase in net sales to $1.1 billion for Q2 2024, but organic sales declined by 0.1%. Net income was $91.2 million, or $2.32 per share. The company is updating its fiscal 2024 guidance to EPS of $9.35 to $9.70 and sales growth of 1% to 3%.
Net sales increased by 1.6% year-over-year to $1.1 billion.
Net income was reported at $91.2 million, or $2.32 per share.
Adjusted net income was $88.2 million, or $2.24 per share, up 9.3% year-over-year.
The company is updating fiscal 2024 guidance.
Revenue by Segment
Forward Guidance
The company updated its fiscal 2024 guidance, projecting EPS of $9.35 to $9.70 on an adjusted basis and sales growth of 1% to 3%.
Positive Outlook
- Potential for reaccelerating sales and earnings growth from easing prior-year comparisons
- Abating technology sector headwinds
- Sustained benefits from internal initiatives
- Technical MRO and capital spending requirements to remain heightened as customers modernize equipment and expand production facilities
- Multi-year secular growth cycle across North America just beginning
Challenges Ahead
- Current economic uncertainty
- Easing end-market demand near term
- Ongoing inflationary headwinds
- Ongoing supply chain headwinds
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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