Industrial parts and products maker Applied Tech (AIT) has reported strong financial results for the fiscal fourth quarter ended June 30. The company provides automation technologies, flow control, fluid power, industrial motion and related maintenance supplies.
Applied reported earnings per share (EPS) of $1.51, higher than $0.77 per share a year ago and the Street’s estimate of $1.15 per share. Quarterly net sales grew 23.6% year-over-year to $895.9 million, surpassing analysts’ expectations of $841.55 million.
The President and CEO of Applied, Neil A. Schrimsher, said, “Entering the early Fiscal Year 2022, we are off to a positive start with organic sales through mid-August up by a high-teens percent over the prior year, and customer indications signaling sustained demand momentum. Our balance sheet is in a solid position, and we see favorable earnings potential beyond cycle fundamentals as we leverage our technical industry position and expanding the addressable market. This includes supporting more of our customers’ industrial technology and operational requirements through our cross-selling efforts, as well as the expansion of faster-growing and higher-margin industrial solutions.”
“While industry-wide supply chain constraints and macro uncertainty remain, we have multiple internal opportunities to drive solid earnings growth and stronger returns on capital in Fiscal Year 2022 and beyond,” Schrimsher added.
Following the announcement of the results, the company issued guidance for Fiscal Year 2022. It expects EPS to be in the range of $5 to $5.40 based on sales growth of 8% to 10%. (See Applied stock chart on TipRanks)
Two months ago, Wells Fargo analyst Michael McGinn maintained a Buy rating on the stock with a price target of $110 (23.4% upside potential). The analyst expects EPS of $1.44 in the first quarter of Fiscal Year 2022.
Overall, the stock has a Moderate Buy consensus rating based on 2 unanimous Buys. The average Applied Tech price target of $110 implies 23.4% upside potential. Shares of the company have gained 41.1% over the past year.
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