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Mar 31, 2022
Applied Industrial Technologies Q3 2022 Earnings Report
Achieved record sales and earnings, driven by strong business momentum and effective management of inflationary pressures.
Key Takeaways
Applied Industrial Technologies reported a strong third quarter with record sales and earnings. Net sales increased by 16.6% year-over-year to $980.7 million, and net income was $68.3 million, or $1.75 per share. The company is raising its fiscal year 2022 guidance for sales, EBITDA margins, and EPS.
Net sales increased 16.6% year-over-year to $980.7 million.
Organic daily sales increased 14.7%.
Net income was $68.3 million, or $1.75 per share.
Fiscal 2022 guidance raised for sales, EBITDA margin, and EPS.
Forward Guidance
The Company is raising guidance for fiscal 2022 and now projects EPS of $6.15 to $6.25 (prior $5.70 to $5.90), sales growth of 14.8% to 15.3% including 13.6% to 14.1% on an organic basis (prior 11.5% to 12.5% including 10.5% to 11.5% organic), and EBITDA margins of 10.5% to 10.6% (prior 10.1% to 10.3%).
Positive Outlook
- Positive demand trends are persisting across our business with organic sales month to date in April up by a low double-digit percent year over year.
- Expect ongoing benefits from our operational execution.
- Expect benefits from inventory management.
- Expect benefits from internal margin initiatives.
- Organic growth and incremental margin momentum is providing a path to achieve our interim annual EBITDA margin target of 11% potentially sooner than expected.
Challenges Ahead
- We continue to navigate an extremely dynamic supply chain.
- We continue to navigate an inflationary environment.
- Guidance does not assume contribution from potential future acquisitions.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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