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Jun 30, 2021
Applied Industrial Technologies Q4 2021 Earnings Report
Reported a strong fourth quarter performance exceeding expectations with record quarterly earnings.
Key Takeaways
Applied Industrial Technologies reported a strong fourth quarter with net sales increasing by 23.6% to $895.9 million and net income of $59.2 million, or $1.51 per share. Underlying demand strengthened across both segments, reflecting sustained recovery in core end markets and momentum from internal growth initiatives. The company is managing inflation well and controlling costs, while benefiting from productivity enhancements.
Net sales for the quarter increased 23.6% to $895.9 million from $725.1 million in the prior year.
Net income for the quarter was $59.2 million, or $1.51 per share.
Organic sales through mid-August are up by a high-teens percent over the prior year.
The company purchased 400,000 shares of its common stock in open market transactions for $40.1 million during the quarter.
Forward Guidance
For the fiscal year ending June 30, 2022, the Company is introducing EPS guidance in the range of $5.00 to $5.40 based on sales growth of 8% to 10% including 7% to 9% on an organic basis, as well as EBITDA margins of 9.7% to 9.9%.
Positive Outlook
- Sales growth of 8% to 10% including 7% to 9% on an organic basis.
- EBITDA margins of 9.7% to 9.9%.
- Steady industrial demand environment relative to current trends.
- Favorable earnings potential beyond cycle fundamentals.
- Leveraging technical industry position and expanding addressable market.
Challenges Ahead
- Ongoing inflationary headwinds including greater LIFO expense.
- Lingering uncertainty related to the COVID-19 pandemic.
- Guidance does not assume contribution from potential future acquisitions.
- Industry-wide supply chain constraints
Historical Earnings Impact
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Avg. Return Before/After Earnings
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