Here are three stocks added to the Zacks Rank #24 (Strong Sell) List today:Apollo Global Management, Inc. (APO) is a private equity firm. The Zacks Consensus Estimate for its current year earnings has been 6.3% downward over the last 60 days.Applied Industrial Technologies, Inc. (AIT) is a distributor of industrial motion, power, control, and automation technology solutions. The Zacks Consensus Estimate for its current year earnings has been revised 4.8% downward over the last 60 days.Beazer Homes USA, Inc. ...

Applied Industrial Technologies, Inc. (AIT) is benefiting from strength across its served markets of food and beverage, lumber and wood, mining, pulp and paper, energy, utilities and refining. The strong position in these markets, sales initiatives and focus on national customer accounts are driving the Service Center Based Distribution segment. The increase in demand for fluid power MRO services across the U.S. manufacturing sector, driven by growing digitization and higher investment in maintenance operat ...

Have you evaluated the performance of Applied Industrial Technologies' (AIT) international operations for the quarter ending June 2024? Given the extensive global presence of this industrial products company, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and ...

Core Insights - Applied Industrial Technologies (AIT) has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to Epiroc Aktiebolag Unsponsored ADR (EPOKY), which has a Zacks Rank of 4 (Sell) [2] - AIT is identified as a more attractive investment option for value investors due to its superior valuation metrics and stronger estimate revision activity [3] Valuation Metrics - AIT has a forward P/E ratio of 19.86, while EPOKY has a higher forward P/E of 27.58, suggesting AIT is more undervalued [3] - The PEG ratio for AIT is 1.99, indicating a better balance between price and expected earnings growth compared to EPOKY's PEG ratio of 8.98 [3] - AIT's P/B ratio stands at 4.61, which is lower than EPOKY's P/B ratio of 5.73, further supporting AIT's valuation advantage [3] Value Grades - AIT has received a Value grade of B, while EPOKY has a Value grade of D, reflecting AIT's stronger position in terms of valuation metrics [3]

Core Insights - Applied Industrial Technologies (AIT) reported fourth-quarter fiscal 2024 earnings of $2.64 per share, exceeding the Zacks Consensus Estimate of $2.52, with a year-over-year increase of 12.3% [1] - Net revenues reached $1.16 billion, slightly below the consensus estimate of $1.19 billion, but showed a year-over-year increase of 0.2% [1] Financial Performance - The Service Center-Based Distribution segment generated revenues of $791.4 million, accounting for 68.2% of net revenues, with a year-over-year increase of 1.2% [2] - The Engineered Solutions segment reported revenues of $369.3 million, contributing 31.8% to net revenues, but experienced a year-over-year decline of 1.8% [3] - Gross profit increased by 5.2% year over year to $356.2 million, with gross margin rising to 30.7% from 29.2% [4] Cost and Cash Flow - Cost of sales decreased by 1.8% year over year to $804.4 million, while EBITDA increased by 9.6% to $153.5 million [4] - Cash and cash equivalents at the end of fiscal 2024 were $460.6 million, up from $344 million at the end of fiscal 2023 [5] - Free cash flow increased by 9.2% year over year to $346.5 million [5] Future Guidance - For fiscal 2025, AIT anticipates adjusted earnings in the range of $9.20-$9.95 per share, with sales expected to decrease by 2.5% to increase by 2.5% year over year [6] - The company expects an EBITDA margin in the range of 12.2-12.3% [6] Industry Performance - Pentair plc reported second-quarter adjusted earnings per share of $1.22, beating estimates and improving 18% year over year [8] - Crown Holdings, Inc. reported second-quarter adjusted earnings per share of $1.81, also exceeding estimates, but net sales decreased by 2.2% year over year [8]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended JUNE 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ to ___ Commission file number 1-2299 APPLIED INDUSTRIAL TECHNOLOGIES, INC. (Exact name of registrant as specified in its charter) Ohio 34-0117420 ...

Luis Alvarez Shares of Applied Industrial Technologies, Inc. (NYSE:AIT) have been on fire recently. Since the outbreak of the pandemic, shares have tripled amidst strong operating performance. The company just ended its fiscal year 2024, and while sales trends are dismal, margins came in at historical highs. With the company guiding for flattish revenues and earnings in 2025, this is nothing much to look forward to. This makes me cautious as the market is still attaching a small premium to the shares, and w ...

Financial Data and Key Metrics Changes - Consolidated sales increased by 0.2% year-over-year, with acquisitions contributing 150 basis points and selling days adding 80 basis points, while foreign currency translation negatively impacted by 10 basis points [18] - Organic daily sales declined by 2% year-over-year, with gross margins reaching 30.7%, an increase of 146 basis points compared to the prior year [20][21] - EBITDA margins exceeded 13% for the first time, with reported EBITDA increasing by 9.6% year-over-year [6][21] Business Line Data and Key Metrics Changes - Service Center segment sales decreased by 0.7% year-over-year on an organic daily basis, while segment EBITDA increased by 16% [19] - Engineered Solutions segment sales decreased by 1.8% year-over-year, with a 4.6% decline in organic daily sales primarily due to fluid power weakness [19][20] - Flow control operations within Engineered Solutions saw low single-digit growth, benefiting from decarbonization efforts and data center growth [14] Market Data and Key Metrics Changes - Organic sales trends showed a decline of mid single digits in early fiscal 2025 compared to prior year levels, reflecting muted demand due to higher interest rates and economic uncertainty [9] - The top 30 end markets showed mixed results, with 14 markets experiencing positive sales growth year-over-year [8] - MRO-related sales, which represent approximately 70% of overall business, held steady with slight year-over-year increases [8] Company Strategy and Development Direction - The company is focused on executing growth strategies through acquisitions and internal investments, with a strong emphasis on technology and automation [15][26] - M&A remains a top capital allocation priority, with an active pipeline targeting enhancements in technical differentiation and service capabilities [16] - The company aims to leverage secular megatrends such as reshoring and infrastructure investments to support long-term growth [26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a mixed end market backdrop and conservative customer spending, but expressed optimism about potential demand recovery in the latter half of fiscal 2025 [25][26] - The company expects ongoing inflationary pressures but anticipates a solid year of free cash flow performance [23][24] - Management highlighted the importance of maintaining operational discipline and cost controls amid economic uncertainty [25] Other Important Information - The company generated record cash flow in fiscal 2024, with over $250 million spent on various capital deployment initiatives [15][22] - Share repurchases totaled approximately 400,000 shares for $73 million, with ongoing plans for additional buybacks [17][22] Q&A Session Summary Question: What is embedded in the midpoint of guidance regarding macro outlook? - Management indicated that the midpoint assumes first half declines by mid single digits organically and second half increases by low single digits [29] Question: How resilient can Engineered Solutions margins be relative to Q4? - Management expects gross margins to decline sequentially from Q4 due to mix and lower sales, but remains optimistic about the segment's margin performance [31][32] Question: How much of the margin performance was due to discrete actions versus discretionary cost management? - Management noted that the margin performance reflects the resiliency of the model, with variable costs adjusting based on sales activity [38] Question: Can you quantify the status of reshoring projects? - Management highlighted ongoing industrial manufacturing capacity growth as a positive indicator, suggesting sustained activity and opportunities for service center business [41] Question: What is the margin profile of recent acquisitions? - Management indicated that the margin profiles of the acquired companies are expected to be similar to existing operations, contributing positively to overall margins [43]

EXHIBIT 99.1 Financial Release For Immediate Release Applied Industrial Technologies Reports Fiscal 2024 Fourth Quarter and Full-Year Results; Issues Guidance for Fiscal 2025 CLEVELAND, OHIO (August 15, 2024)) – Applied Industrial Technologies (NYSE: AIT), a leading value-added distributor and technical solutions provider of industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies, today reported results for its fiscal 2024 fourth quarter and full year ended Ju ...

Core Viewpoint - Applied Industrial Technologies (AIT) reported quarterly earnings of $2.64 per share, exceeding the Zacks Consensus Estimate of $2.52 per share, and showing an increase from $2.35 per share a year ago [1] Financial Performance - The company achieved an earnings surprise of 4.76% for the quarter, having previously expected earnings of $2.40 per share but delivering $2.48 per share in the prior quarter, resulting in a surprise of 3.33% [1] - Revenues for the quarter ended June 2024 were $1.16 billion, which missed the Zacks Consensus Estimate by 2.20%, remaining unchanged from the previous year's revenues of $1.16 billion [1] - Over the last four quarters, the company has surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [1] Stock Performance - Since the beginning of the year, Applied Industrial Technologies shares have increased by approximately 15.2%, compared to a 14.4% gain in the S&P 500 [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.35 on revenues of $1.12 billion, and for the current fiscal year, it is $10.15 on revenues of $4.64 billion [4] - The estimate revisions trend for the company is currently favorable, resulting in a Zacks Rank 2 (Buy), indicating expected outperformance in the near future [4] Industry Context - The Manufacturing - General Industrial industry, to which Applied Industrial Technologies belongs, is currently ranked in the bottom 32% of over 250 Zacks industries, suggesting potential challenges ahead [5] - Another company in the same industry, Nordson (NDSN), is expected to report quarterly earnings of $2.33 per share, reflecting a year-over-year change of -0.9%, with revenues anticipated to be $655.23 million, up 1% from the previous year [5][6]