Applied Industrial Technologies, Inc.
) has delivered 10 straight positive earnings surprises with an
average beat of almost 6.9% for the last four quarters. This Zacks
#2 Rank (Buy) industrial equipment provider has been consistently
distributing dividends for more than 50 years and currently has a
solid 2.1% yield. Its solid fiscal fourth-quarter results and its
strategic acquisitions bode well for the future.
On August 9, Applied Industrial Technologies reported fiscal fourth
quarter 2012 earnings per share of 75 cents, surpassing the Zacks
Consensus Estimate by 7.1% and the year-ago earnings by 15.4%. Net
sales jumped 5.1% year over year to $620.0 million.
For fiscal 2012, earnings per share came in at $2.54 versus $2.24
in fiscal 2011, while net revenue jumped 7.3% to $2.4 billion.
Acquisitions have been the company's strength for a long time. In
fiscal 2012, the company completed three strategic acquisitions in
Canada. Recently, Applied Industrial Technologies successfully
acquired SKF Group's company-owned distribution business in
Australia and New Zealand.
Inspired by its fiscal 2012 financial performance, Applied
Industrial Technologies looks forward to benefits from industrial
economic development. The company expects total revenue to grow 9%
to 13% in fiscal 2013 with earnings per share between $2.90 and
Earnings Estimates Move Higher
Over the last 7 days, two of 4 estimates increased for fiscal 2013,
pushing the Zacks Consensus Estimate up by 7.2% to $2.96 per share.
Meanwhile for fiscal 2014, the Zacks Consensus Estimate moved up
3.6% to $3.18 per share.
These estimates represent year-over-year earnings growth of 13.5%
for fiscal 2013 and 7.3% for fiscal 2014.
Regular dividend payments and increases at intervals have been the
company's most attractive and laudatory features. A 5-Year average
dividend yield for Applied Industrial Technologies stands at 2.3%,
while the stock currently yields a solid 2.1% based on its
quarterly dividend of 21 cents.
Applied Industrial Technologies is currently trading at a forward
P/E of 13.6x, compared with 14.2x of for the peer group. The
company's PEG ratio is currently at 0.89. ROE stands at 17.0%
compared with the peer group average of 18.1%.
As can be observed from the Price & EPS Surprise chart below,
the company has beaten the Zacks Consensus Estimate for 10 straight
Regular dividend payouts, strategic acquisitions, upbeat results
and a promising outlook make Applied Industrial Technologies an
attractive investment option.
Headquartered in Cleveland, Ohio, Applied Industrial Technologies
was incorporated in 1923. The $1.7 billion company operates in the
Industrial Equipment Wholesale industry and distributes industrial
products for MRO needs of machinery and equipment. Services are
offered in U.S., Canada and Mexico through roughly 500 facilities.
APPLD INDL TECH (AIT): Free Stock Analysis
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